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TMI Blog2023 (3) TMI 1374X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The present Tax Appeal under Section 260A of the Income Tax Act, 1961 is directed against judgment and order dated 22.7.2022 passed by the Income Tax Appellate Tribunal, Ahmedabad Bench in Income Tax Appeal No. 24 of 2022 for the assessment year 2018-19. The appeal filed by the assessee came to be dismissed. 3. The facts are that the appellant which is a charitable trust registered under Section 12AA of the Income Tax Act, 1961 (hereinafter referred to as 'the Act), filed return of income on 31.12.2018, in respect of the assessment year 2018-19 declaring total income to be nil, after claiming exemption of Rs. 1,37,628/- under Section 11(1) of the Act, and also exemption to the extent of Rs. 46,62,372/- under Section 11(2) of the Act. 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt in both the aforesaid decisions. 2. The following substantial questions of law arise before this Court : "(i) Whether, in the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in confirming the order of the respondent in denying the claim of exemptions under section 11(1) and 11(2) of the Act merely on the ground of belated filing of Audit Report in Form 10B, more so when such audit report was admittedly filed electronically well before the order denying such exemptions came to be passed ? (ii) Whether, in the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in law in not following the binding judgements of Hon'ble the jurisdictional High Court ? (iii) Whether the or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ange the settled legal position insofar as the issue on hand is concerned. (vii) The tribunal committed error in not following binding decision of the jurisdictional High Court and has further erred in distinguishing the same on erroneous grounds. 4.1 In support of the above submissions, reliance was placed on the decisions of this court in CIT Vs. Mayur Foundation [(2005) 274 ITR 562], in CIT Vs. Xavier Kelavani Mandal P. Ltd [(2014) 41 taxmann.com 184], in CIT Vs. Andra Pradesh State Road Transport Corporation [(2006) 285 ITR 147] and CIT Vs. Rai Bahadur Bissesswarlal Motilal Malwasie Trust [(1992) 65 taxmann 273]. 5. The decision of the Division Bench of this court in Xaviers Kelavni Mandal P. Limited (supra) leaves the issue no long ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g a sufficient cause. This decision of Punjab & Haryana High Court has been relied on by the Tribunal." 5.2 The decision of this court in Mayur Foundation (supra) stands to support the submission of the appellant. The decision in Rai Bahadur Trust (supra) of Culcutta High Court takes a same view as was taken as by this court in Xaviers Kelavni Mandal (supra). It that case the assessee- charitable trust filed the return of income but was not accompanied by audit report in Form 10B as required under Section 12A. The Culcutta High Court held that the provisions of Section 12A are directory in the sense that Assessing Officer are not powerless to allow an assessee to file audit report, if not filed along with return, anytime before completion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not be said to be compulsorily resorted to by the assessee. The circular No. 7/18 dated 20.12.2018 issued under Section 119 of the Act could not be, therefore said to have taken away the appellate remedy. 5.7 The tribunal misdirected itself in yet another way when it observed that The Finance Act, 2015 with effect from 1.4.2016, that is from assessment year 2016-17 changed the legal position. There is no such change which could be said to have altered the legal position. The only change is with regard to compulsory filing of audit report in Form 10B in electronically form which is made mandatory under Rule 12 (2) of the Income Tax Rules, 1962 but there is no change with regard to the substantive law about filing of audit report as stated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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