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2024 (2) TMI 1171 - ITAT DELHIDenial of exemption u/s 11 and 12 - not uploading the Audit Report - delay in filing Form 10B - It is the case of the Assessee that the Assessee had uploaded in its Audit Report in Form No. 10B through its auditor, due to some technical mistake in the software the Audit Report uploaded was neither accepted by the system nor was it rejected immediately and no intimation either through e-mail or any post from the Department has given to the Assessee on this regard HELD THAT:- As seen from the record that the Form No. 10B was ready as on 29/09/2017 i.e. before filing Return of Income u/s 139 of the Act i.e. 26/10/2017. After coming to know about the said mistake of not uploading the Audit Report, the same has been uploaded on 06/09/2019. After coming to know about not uploading the Audit Report, the Assessee filed a letter for condonation of delay uploading the Form 10B along with certificate from auditors explaining the reason for delay and hard copy of Form No. 10B was sent through registered post to the Jurisdictional Commissioner of Income Tax (Exemptions). Thus, it can be safely construed that the Revenue has rejected the plea of the Assessee based on mere technicalities and it is not the case of the Revenue that the Audit Report was not ready as on the date of filing of the return or Assessee is not eligible for any other reason for claiming charitable status by claiming application of income for charitable purpose u/s 11 & 12 of the Act. It is well settled law that the Revenue Authorities have to tax the right person in right manner and shall not disallow the eligible deductions on mere technicalities. The Revenue authorities have not followed the ratio laid down in the case of Pawan Kumar Agarwal [2014 (5) TMI 449 - DELHI HIGH COURT], therefore, in our considered opinion the Revenue Authorities should have allowed the benefit of exemption to the Assessee. Thus we allow the Grounds of appeal of the Assessee by deleting the addition made by the A.O, which has been confirmed by the CIT(A).
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