TMI Blog2020 (11) TMI 962X X X X Extracts X X X X X X X X Extracts X X X X ..... come and has filed audit report before the due date of return of income under section 139(1) has not been controverted by DR. Commissioner (Appeals) has also upheld the disallowance of exemption by simply stating that it is not a rectifiable mistake under section 154 of the Act. When the assessee has complied with the statutory provisions in terms of the CBDT Circular, the delay if any, in filing the audit report should have been condoned. We delete the disallowance made and allow assessee s claim of exemption under section 11 - Grounds raised by the assessee are allowed. - ITA no.3663/Mum./2019 - - - Dated:- 11-11-2020 - Shri Saktijit Dey, Judicial Member And Shri N.K. Pradhan, Accountant Member Assessee by : Shri Bhupendra Shah ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .e., before the due date of filing of return of income under section 139(1) of the Act. He submitted, the approval of the audit report by the trustees was on 18th May 2017. Thus, he submitted, though, there may be a delay in approval of the audit report, however, the audit report was filed with the Department much before the due date of return of income. Therefore, no disallowance of exemption under section 11 of the Act can be made on the ground of delayed filing of audit report. Further, he submitted, the CBDT in its Circular no.10/2019, has clarified that where the audit report in Form no.10B has been obtained before the filing of the return of income, but was furnished subsequent to the filing of return of income but before the due date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subsequent to filing of return of income, but before the date specified under section 139 of the Act, such delayed filing should be condoned. In the facts of the present case, the claim of the assessee that it has obtained the audit report prior to the date of filing of return of income and has filed audit report before the due date of return of income under section 139(1) of the Act has not been controverted by the learned Departmental Representative. The learned Commissioner (Appeals) has also upheld the disallowance of exemption by simply stating that it is not a rectifiable mistake under section 154 of the Act. In our view, when the assessee has complied with the statutory provisions in terms of the CBDT Circular, the delay if any, in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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