TMI Blog2023 (7) TMI 293X X X X Extracts X X X X X X X X Extracts X X X X ..... egarding furnishing of audit report along with the return has to be treated as a procedural provision. It is directory in nature and its substantial compliance would suffice. Benefit of exemption should not be denied merely on account of delay in furnishing the same. Also see SOCIAL SECURITY SCHEME OF GICEA case [ 2022 (12) TMI 1172 - GUJARAT HIGH COURT] No hesitation in confirming the order passed by Ld. CIT(A) who has directed JAO to verify the Form No. 10B and allow the claim of exemption u/s. 11 and compute the total income. Decided in favour of assessee. - Shri Waseem Ahmed, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member For the Assessee : Shri Nitesh Thakkar, C.A. For the Revenue : Shri Rakesh Jha, Sr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .1,52,42,281/-. 2.2. It is thereafter filing of the appeal, the assessee uploaded electronically Form 10B on 27.02.2021. During the appellate proceedings, the assessee admitted that there has been a procedural delay in furnishing the Form 10B and the delay was on account of various technical issues. 2.3. The assessee relied upon Jurisdictional High Court Judgment in the case of CIT Vs Xavier Kelavani Mandal (P.) Ltd. wherein the Hon ble Gujarat High Court has held that even if the Form No. 10B is filed at a later stage, either before the A.O. or before the appellate authority; it would be a sufficient compliance with requirements of section 12A(1)(b) as these requirements are only directory in nature. 2.4. The assessee further reli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing the following Grounds of Appeal: 1. Whether, on the facts and in the circumstances of the case and in law, the Ld.CIT(A) is justified in condoning the delay in late filling of form No.10B for filling of audit report by the assessee after the due date of filling . 2. Whether, on the facts and in the circumstances of the case and in the law, the Ld.CIT(A) is justified in the allowing an amount of Rs.3,57,53,725/- claimed by the assessee as exemption u/s 11 of the act though the assessee has not filed the audit report in form no.10B before due date as prescribed / notified by CBDT. 3. The appellant reserves right to add, to alter, to amend as to delete any of the grounds of appeal on or before final hearing of the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilable on record. The moot question whether it is permissible to the assessee to produce the audit report at the appellate stage is correct in law is been decided by the Jurisdictional High Court in the case of CIT Vs. Gujarat Oil Allied Industries Ltd. [1993] 201 ITR 325 (Guj.) wherein it is held that the provisions regarding furnishing of audit report along with the return has to be treated as a procedural provision. It is directory in nature and its substantial compliance would suffice. Thus the Hon ble Court Held that the benefit of exemption should not be denied merely on account of delay in furnishing the same. 6.1. Similarly in the case of Social Security Scheme of GICEA (cited supra) the Hon ble Jurisdictional High Court held a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... donation of delay filed by the petitioner before the respondent is allowed. 6. The respondent is now directed to process the return in accordance with law. It is noticed that no assessment is framed and only an intimation under section 143(1) of the Act was issued. No scrutiny could be carried out by the respondent since the audit report under section 10B was not on record. Learned advocate for the petitioner Mr. B.S. Soparkar fairly submitted that the issue of benefit of exemption may be examined by issuance of notice u/s 143(1)/143(2) and the petitioner shall not object to the said proceedings by taking the ground of limitations. 6.2. Respectfully following the above judicial pronouncements by Jurisdictional High Court, we h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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