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2018 (10) TMI 671 - AT - Income TaxExemption u/s 10(23C)(vi) / u/s 11 - Reopening of assessment u/s 147/148 - charitable activity - for the impugned Assessment Year, no return of income had been filed by the assessee and the assessees application for approval u/s 10(23C)(vi) of the Act had been rejected. - assessee contended that having been granted registration u/s 12AA effective from Assessment Year 2013-14, the benefit of the same was available to it in the impugned year also by the virtue of the first proviso to Section 12A(2) of the Act. Held that:- Undoubtedly the requirement of filing of return of income and the report of audit have been specified for being eligible for claiming exemption u/s 11 & 12 of the Act, alongwith the grant of registration u/s 12AA of the Act. In the case of the assessee, we find, that the return of income has been filed in response to notice u/s 148 of the Act. Therefore the condition of filing of return of income stands fulfilled. The section, we find, nowhere prescribes the filing of return by any due date, therefore the findings of the CIT(A) that the assessee having not filed its return within the prescribed time it had failed to comply with the requirement prescribed, is not tenable. As for the requirement of filing report of audit in the prescribed form, the said condition has been held by courts to be merely procedural and therefore directory in nature and not mandatory for the purpose of claiming exemption u/s 11 & 12 of the Act. The reassessment framed is therefore set aside. As a consequence the addition made is deleted. - Decided in favor of assessee.
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