TMI Blog2001 (11) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... ght to have been given to the assessee to rectify the defect, completely overlooked the defect and notwithstanding the continued exist ence of the defect, granted a benefit to which the assessee was not entitled in the absence of the audit report. That erroneous view of the Commissioner has been affirmed by the Tribunal. - The order of the Tribunal therefore cannot be sustained. We, therefore, answer the question that has been referred to us in favour of the Revenue and against the assessee. - - - - - Dated:- 1-11-2001 - Judge(s) : R. JAYASIMHA BABU., A. K. RAJAN. JUDGMENT The judgment of the court was delivered by R. JAYASIMHA BABU J.-The question referred to us is as to whether, on the facts and in the circumstances of the case, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e such condition is that prescribed under clause (b) which reads as under: "where the total income of the trust or institution as computed under this Act without giving effect to the provisions of section 11 and section 12 exceeds twenty-five thousand rupees in any previous year, the accounts of the trust or institution for that year have been audited by an accountant as defined in the Explanation below sub-section (2) of section 288 and the person in receipt of the income furnishes along with the return of income for the relevant assessment year the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed." It is, therefore, essential that, in order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1956), also the report under that section." Section 12A(b) of the Act requires the trust which claims the benefit of sections 11 and 12 of the Act, when it files a return of income, to file along with that return the report of the audit for that year in the form prescribed under rule 17B of the Income-tax Rules, 1962. To the extent the return is not accompanied by that audit report in Form No. 10B the assessee will not be eligible to claim the benefit of sections 11 and 12 of the Act. The return so filed by such an assessee would therefore be defective, as the return filed by the trust is filed, inter alia, with the object of claiming a benefit under sections 11 and 12 of the Act. Such a defect when noticed by the Assessing Officer is a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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