TMI Blog2023 (4) TMI 369X X X X Extracts X X X X X X X X Extracts X X X X ..... ct in the return. See case of Sarvodaya Charitable Trust vs. Income Tax Officer.[ 2021 (1) TMI 214 - GUJARAT HIGH COURT] The assessee had rectified the defect within stipulated time and the procedure for filing Audit Report was completed. We find that assessee is eligible for deduction u/s 11 of the Act. The addition made by the ld. AO is liable to be quashed. Accordingly, the appeal of the assessee is allowed. - I.T.A. No.214/Asr/2022 - - - Dated:- 24-2-2023 - Dr. M. L. Meena, Accountant Member And Sh. Anikesh Banerjee, Judicial Member For the Appellant : Sh. Jai Gopal Bansal, Adv. For the Respondent : Sh. Ravinder Mittal, Sr.DR ORDER PER:ANIKESH BANERJEE, JM: The instant appeal was filed by the assessee a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 43(1) and claimed deduction u/s 11 which was disallowed by the CPC, Bangalore and total addition was made Rs. 11,46,800/-. The assessee had not filed the audit report in Form No. 10B with the return u/s 139. Accordingly, the return was treated as defective u/s 139(9). The assessee rectified within one month submitted the report on dated 23.03.2019 as time allowed in the deficiency letter by the ld. AO. Finally, the rectified order was passed on dated 21.05.2019 without considering the submission of assessee and sustained the addition amount of Rs. 11,46,800/- with the assessee s total income. Aggrieved assessee filed an appeal before the ld. CIT(A) but remained unsuccessful. Being aggrieved assessee filed an appeal before us. 4. During ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Allied Industries' case supra) and Madras High Court in A.N. Arunachalam's case (supra), which has been approved by . Full Bench of this Court in Punjab Financial Corporation's case (supra), we are of the view that the Tribunal was not right in granting relief to the assessee as admittedly the audit report was filed by the assessee after the assessment had already been framed by the AO. 5. The ld. Sr. DR vehemently argued and relied on the order of the revenue authorities. In connection to his argument, the relevant paragraph of page 3 of CIT (A) s order is reproduced as below:- The section above clearly spells out the time limit of compliance. That means that both the return of income and audit report has to be filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the return. Here we respectfully refer the order of Hon ble High Court of Gujarat in the case of Sarvodaya Charitable Trust vs. Income Tax Officer. (Exemption), [2021] 125 taxmann.com 75 (Gujarat) . The relevant paragraph is extracted as below:- 32. We may also refer to the decision of this Court in CIT v. Gujarat Oil and Allied Industries Ltd. [1993] 201 ITR 325 (Guj.), wherein it is held that the provision regarding furnishing of audit report with the return has to be treated as a procedural proviso. It is directory in nature and its substantial compliance would suffice. In that case, the assessee had not produced the audit report along with the return of income but produced the same before the completion of the assessment. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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