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TMI Blog2023 (8) TMI 914X X X X Extracts X X X X X X X X Extracts X X X X ..... to as the "Act' for short). 2. The grounds raised in the appeal are as under: "1. The rectification order u/s. 154 is bad in law. 2. The CPC, Bangalore and the ld.CIT(A), NFAC, Delhi have erred in law as well as on facts in not considering belated filed Form 10B for giving exemption u/s. 11 & 12 of the Act." 3. As is evident from the grounds, the sole issue raised by the assessee in its appeal is denial of exemption under sections 11 and 12 of the Act on the ground that the assessee has filed form no. 10B belatedly and not filed the same along with filing of the return of income. 4. Brief fact of the case is that the assessee is a public charitable trust registered under section 80G(5) and 12A(a) of the Act since 1992. In all these ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The same was rejected by the AO. He submitted that the ld.Revenue Authorities failed to appreciate that various higher judicial authorities have dealt with similar issue and held that nonfiling of audit report by charitable trust in form no.10B is merely a procedural defect and where such defect had been removed by filing Form No.10B with rectification application under section 154, the assessee was to be given benefit under section 11. For this proposition he relied on various case laws as under: i) CIT Vs. Rai Bahadur Bissesswarlal Motilal Malwasie Trust, (1992) 195 ITR 825 (Calcutta HC); ii) Sarvodaya Charitale Trust Vs. ITO (Exemption), (2021) 125 taxmann.com 75 (Guj HC); iii) SwajanPariwar Trust Vs. ACIT (Exemption), (1997) 57 TT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... application on 14.6.2019. In other words, the ld.Revenue authorities had at their command the Form No.10B while deciding the rectification application on 14.6.2019. 8. The appellate proceedings being the continuation of assessment proceedings merely because the assessee has not furnished the audit report along with return of income, but filed during the assessment proceedings, and available even during the appellate proceedings, it cannot be stated that the assessee has failed to comply with the provisions so as to deny rightful claim, which otherwise was allowable. The Hon'ble Jurisdictional High Court in a recent decision in Social Security Scheme of GICEA Vs. CIT (Exemptions), (2023) 147 taxmann.com 283 (Guj) in the matter of exemption ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itions for availing such exemption, should not be denied the same merely on the bar of limitation especially when the legislature has conferred wide discretionary powers to condone such delay . Applying the said principle, the petition is allowed. The impugned order passed by respondent dated 12-3-2021 is quashed and aside. The impugned order of rectification under section 154 of the Act dated 25-1-2019 is also quashed and set aside. The application for condonation of delay filed by the petitioner before the respondent is allowed." We also find, yet in another case on identical issue the Hon'ble jurisdictional High Court in Association of Indian Panelboard Manufacturer Vs. The Deputy Commissioner of Income Tax, R/Tax Appeal No. 655 of 2022 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orm alongwith return of income is a technical issue, which is curable, and if the assessee has complied with the provisions of the Act in the course of assessment proceedings by curing the defect by filing the audit report, and thereby satisfying substantial compliance, the Revenue cannot ignore the report so filed and reject technically the claim of benefit of exemption under section 11 of the Act, which the assessee was claiming continuously for past so many years, which fact was not disputed by the Department. This being so, we do not find any merit in the order of the ld.CIT(A) on this issue. We, therefore, set aside order of the ld.CIT(A) and allow the grounds of appeal of the assessee. 10. In the result, the appeal of the assessee i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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