TMI Blog2023 (7) TMI 739X X X X Extracts X X X X X X X X Extracts X X X X ..... ile the above amount was reflected in the balance sheet of the year ended 31.03.2020. Therefore the findings arrived by the Ld. CIT(Exemption) is not correct in law. Further though the assessee filed Form No. 10 belatedly along with the Revised Return, however Form No. 10B which was filed along with the original return also certifies the amount of accumulation made by the assessee Trust. Without looking into the same, the assessee was denied the benefit of exemption u/s. 11 of the Act, which in our considered opinion is not correct in law. We hereby set aside the order passed by the Lower Authorities and direct the JAO to allow the claim of exemption u/s. 11 - Decided in favour of assessee. - ITA No. 104/Rjt/2023 - - - Dated:- 12-7- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tification Petition was rejected vide order dated 14.08.2020 on the ground that as per section 13(9), exemption u/s. 11(2) is allowed if (a) Return is filed before the due date, (b) Statement in Form No.10 has to be e-filed before the due date. Since the assessee has not efiled on Form No. 10 within due date, hence exemption u/s. 11(2) is not allowed to the assessee. 3. Aggrieved against the Rectification Order, the assessee filed an appeal before Ld. National Faceless Appeal Centre. The Ld. NFAC dismissed the assessee appeal on the ground that the assessee has e-filed Form No. 10 on 18.02.2020 that is after the due date specified u/s. 139(1) of the Act. As per section 13(9) of the Act exemption u/s. 11(2) is allowed only if Form 10 is e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i appearing for the assessee submitted that the assessee Trust was filing the original return filed Form 10B which also certified the amount of accumulation made by the assessee Trust. Though Form 10 was filed belatedly but alongwith the Revised Return, therefore the CPC is not correct in denying the claim of exemption u/s. 11 of the Act. Originally there were some technical issues on e-filing Portal of the Department, therefore Form 10 could not be uploaded. In fact, the Chartered Accountant who filed the Form No. 10 have filed an affidavit explaining the technical error in uploading and filing the same belatedly along with the Return of Income. 4.2. The Ld. Counsel relied upon Jurisdictional High Court judgment in the case of Trust For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the assessee filed its original Return of Income claiming accumulation of Rs. 17,00,000/- u/s. 11(2) of the Act by filing the return along with the Audit Report in Form 10B. It is thereafter the assessee filed Revised Return along with Form No. 10 on 18.02.2020. While the CPC processing the Revised Return of Income, denied the exemption u/s. 11 of the Act on the ground that Form No. 10 was not filed along with the original Return filed u/s. 139(1) of the Act. The assessee s Rectification Petition was also rejected, as per Section 13(9) of the Act, which prescribes to file the Return within the due date along with the Statement in Form 10. Though CIT(Exemption) denied the condation of filing of Form 10 on the ground that the assessee not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dings the AO does not have the necessary information, question of excluding such income from assessment does not arise at all. As a matter of fact, this benefit of excluding this particular part of the income from the net of taxation arises from s 11 and is subjected to the conditions specified therein. Therefore, it is necessary that the assessing authority must have this information at the time he completes the assessment. In the absence of any such information, it will not be possible for the assessing authority to give the assessee the benefit of such exclusion and once the assessment is so completed, in our opinion, it would be futile to find fault with the assessing authority for having included such income in the assessable income of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Allied Industries [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. This Court took the view that the benefit of exemption should not be denied merely on account of delay in furnishing the same and it is permissible for the assessee to produce the audit report at a later stage either before the Income-tax Officer or before the appellate authority by assigning sufficient cause. 6.3. Respectfully followin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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