TMI Blog1981 (6) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... e ITO is not empowered to take cognizance of the audit report after the submission of the return". 2. The contentions raised and submissions made on behalf of the rival parties have been heard and record perused. The assessee is an AOP and the assessment year involved is 1978-79 for which the accounting period is the Diwali 1977. The ITO while framing the assessment order on 21/22nd Dec., 1979 noticed that the audit report was not submitted along with the return in terms of s. 12A(b) of the IT Act, 1961 and r. 17A of the IT Rules, 1962. The return was filed on 5th July, 1978 and the audit report appears to have been received by the ITO's office on 21st Dec., 1979. 3. The ITO considered that the provisions of s. 12A(b) of the Act being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed along with the return which was filed on 5th July, 1978, the audit report in fact was filed on 21st Dec., 1979. It was further contended that the assessment was framed on 22nd Dec., 1979 and that the audit report was available with the ITO at the time of framing the assessment and the ITO for the reasons best known to him completed the assessment without considering the contents of the audit report and thereby refusing various concessions contemplated under s. s 11 12 of the Act. The ld. A/R as well contended that the provisions of law contained in s. 12A(b) of the IT Act, 1961, are directory and procedural only and cannot be considered to be mandatory and for assistance he relied upon the ratio of decision in the case of Sitaram Bhagw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be prescribed. In pursuance of s. 12A(b) of the Act r. 17A of the IT Rules, 1962 appears to have brought on statute w.e.f. 1st April, 1973 where under application for registration of charitable or religious Trust etc. are contemplated. 8. The provisions contained in s. 12A(b) of the Act about the furnishing of audit report appear to be some sort of a procedural and enabling provision. The requirement appears to be that for finalising the assessment, the audit report should be available to the ITO for properly investigating the whole issue. It is difficult to read therefore that it was mandatory that the return should definitely and positively be accompanied by an audit report. The inference is very much possible that such an audit repor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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