TMI Blog2023 (6) TMI 1279X X X X Extracts X X X X X X X X Extracts X X X X ..... of which the assessee however, claimed exemption u/s. 11 of the Act without auditor s quantification. Thus, no infirmity in the order of NFAC, Delhi in confirming the intimation issued by the CPC, Bangalore u/s. 143(1) of the Act denying the exemption u/s. 11 of the Act. Thus, the grounds raised by the assessee fails and are dismissed. - ITA No. 565/PUN/2023 - - - Dated:- 28-6-2023 - Shri S.S. Viswanethra Ravi, Judicial Member And Shri G.D. Padmahshali, Accountant Member For the Assessee : Shri Prateek Jha For the Revenue : Shri M.G. Jasnani ORDER PER S.S. VISWANETHRA RAVI, JM : This appeal by the assessee against the order dated 31-03-2023 passed by the National Faceless Appeal Centre, Delhi ( NFAC ) for as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the claim of exemption u/s. 11 of the Act. The ld. AR contended that non-filing of Auditor s Report is neither intentional nor willful. 5. The ld. AR drew our attention to the decision of Hon ble High Court of Calcutta in the case of Rai Bahadur Bissesswarlal Motilal Malwasie Trust reported in (1992) 65 Taxman 273 (Cal) and argued that the AO having found non-filing of audit report ought to have given an opportunity to submit the audit report before the completion of assessment. The ld. AR drew our attention at page No. 2 of the impugned order and submits that the audit report in Form No. 10B was filed on 21-11-2018 which is well within the date of raising intimation u/s. 143(1) of the Act. The filing of Form No. 10B is only procedur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . DR relied on the order of CIT(A), NFAC, Delhi. 8. We note that the decision of Hon ble High Court of Calcutta in the case of Rai Bahadur Bissesswarlal Motilal Malwasie Trust (supra) opined that the provisions of section 12A are directory in the sense that the Assessing Officer is not powerless to allow an assessee to file the audit report, if not filed along with the return, any time before the completion of the assessment. Further, one has to look at the purpose of the provisions. One has to construe the provision to ensure coherence and consistency to avoid undesirable consequences, taking into account the audit report was made ready after the return was filed, there was no reason why such audit report should not be allowed to be fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ling of the same at the relevant point of time. 11. After careful consideration of the case laws as relied on by the ld. AR, we note that the assessee therein filed audit report in Form No. 10B belatedly, but however, obtained before filing the return of income u/s. 139 of the Act. In the present case, as it is evident from impugned order vide submissions made through ground No. 3 at page 4 which clearly shows the audit report itself was dated 21-11-2018 which demonstrates that at the time of filing return of income audit report was not ready, consequently we can say the claim u/s. 11 was not quantified. We note that it is a substantial failure of the assessee in getting the books of account audited before prescribed due date and also be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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