TMI Blog2023 (5) TMI 960X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee s claim for exemption u/s.11 of the Act, but at the same time, restore the matter to the file of the A.O with a direction to consider the assessee s claim for deduction of expenses as debited in the income and expenditure account, i.e. to the extent the same are allowable under the Act. Appeal of the assessee partly allowed for statistical purposes. - ITA Nos. 15 And 16/RPR/2022 - - - Dated:- 22-5-2023 - Shri Ravish Sood, Judicial Member For the Assessee : S/Shri Sunil Kumar Agrawal And Madhu Sudan Sawdia, CAs For the Revenue : Shri Piyush Tripathi, Sr. DR ORDER PER RAVISH SOOD, JM The captioned appeals filed by the assessee are directed against the respective orders passed by the Commissioner of Income-Tax (Appeals), National Faceless Appeal Center (NFAC), Delhi, dated 29.11.2021 02.12.2021, which in turn arises from the orders passed by the Central Processing Center (CPC)/A.O under Sec. 143(1) of the Income-tax Act, 1961 (in short the Act ) dated 29.03.2019 27.03.2019 for the assessment years 2016-17 2017-18. As the issues involved in the captioned appeals are inextricably interlinked; or in fact interwoven, therefore, the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the reasons for declining the assessee s claim of exemption u/s.11 as stated in the intimation issued by the CPC, Bangalore dated 29.03.2019, is culled out as under: Exemption U/s. 11(2) of the Income Tax Act shall be allowed only if Form 10 (in Electronic Mode) and the Return of Income are furnished within due date specified U/s.139(1) of the Act. Also, Schedule J and I of ITR 7 have to be appropriately filled. The assessee on receipt of the aforesaid intimation u/s.143(1)(a) of the Act filed an appeal before the CIT(Appeals), and also moved an application for rectification of mistake u/s.154 of the Act dated 09.04.2019 with the A.O. The application for rectification of mistake was rejected by the CPC, Bangalore vide its order passed u/s.154 of the Act dated 07.06.2019. In the meantime, the assessee uploaded Form 10B electronically on 21.06.2019. 7. On appeal, the CIT(Appeals) did not find favour with the contentions advanced by the assessee. It was observed by the CIT(Appeals) that the assessee trust had filed Form 10B r.w.r. 12(2) of the Income Tax Rules, 1962 on 21.06.2019 i.e. much after the due date for filing of its return of income u/s.139 of the Act. Apropos t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s.12A(b) of the Act in Form 10B, dated 30.09.2016 Page 3 to 9 of APB. Further, the Ld. AR has taken me through Form 10B dated 19.06.2019 that was uploaded by the assessee on 21.06.2019. On the basis of the aforesaid facts, it was submitted by the Ld. AR that as the assessee-trust had obtained the audit report u/s.12A(b) of the Act in Form 10B on 30.09.2016, i.e. before filing of its return of income u/s.139(4) of the Act on 28.03.2018, and had further e-filed/uploaded the same subsequent to filing of its return of income, i.e. on 21.06.2019, therefore, the delay involved in filing of Form No.10B was to be condoned as per Para 4(i) (supra) of CBDT Circular No.10 (supra) r.w. Circular No.28 (supra). On the basis of the aforesaid facts, it was submitted by the Ld. AR that as the assessee had cumulatively satisfied the conditions provided in Para 4(i) of the CBDT Circular No.10 [F No.197/55/2018-ITA-I], dated 22.05.2019, therefore, the delay involved in e-filing/uploading of Form 10B for the year under consideration i.e. A.Y.2016-17 was mandatorily required to be condoned. Apart from that, it was submitted by the Ld. AR that as filing of audit report is merely directory in nature and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 88 and the person in receipt of the income is required to furnish 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. 2. As per Rule 17B of the Income-tax Rules, 1962 (hereafter Rules ) the audit report of the accounts of such a trust or institution is to be furnished in Form No. 10B. As per Rule 12(2) of the Rules, such audit report is to be furnished electronically. The failure to furnish such report in the prescribed form along with the return of income results in disentitlement of the trust from claiming exemption under sections 11 and 12 of the Act. 3. Representations have been received by the Board/field authorities stating that Form No. 10B could not be filed along with the return of income for AY 2016-17 and AY 2017-18. It has been requested that the delay in filing of Form No. 10B may be condoned. Previously, vide instruction in F. No. 267/482/77-IT(part) dated 09-02-1978, the CBDT had authorized the ITO to accept a belated audit report after recording reasons in cases where some delay has occurred for reas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his sub-section, specified date , in relation to a return for an assessment year, means,- (a) in the case of every assessee whose total income, or the total income of any person in respect of which he is assessable under this Act, includes any income from business or profession, the date of the expiry of four months from the end of the previous year or where there is more than one previous year, from the end of the previous year which expired last before the commencement of the assessment year or the 30th day of June of the assessment year, whichever is later; (b) in the case of every other assessee, the 30th day of June of the assessment year. 13. On the basis of the aforesaid Explanation 1 , it can safely be gathered that the specified date in the case of the assessee trust before me for A.Y.2016-17 will be 30.06.2016. As the assessee trust in the case before me, had e-filed/uploaded the audit report in Form 10B as on 21.06.2019, which is much beyond the date specified u/s.139 of the Act, therefore, it s case would clearly fall beyond the scope and gamut of Para 4(i) of the CBDT Circular No. 10 dated 22.05.2019. On the basis of the aforesaid facts, I am of the con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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