TMI Blog2023 (9) TMI 1029X X X X Extracts X X X X X X X X Extracts X X X X ..... ply with the provisions so as to deny substantial justice by way of granting exemption. As in a recent decision in Social Security Scheme of GICEA [ 2022 (12) TMI 1172 - GUJARAT HIGH COURT] in the matter of exemption provisions contained in section 11/12 of the Act, requiring filing of Form 10B alongwith return of income for claiming exemption, held the requirement of furnishing of report to be a mandatory requirement while that of filing the report alongwith return of income to be a procedural requirement. We have no hesitation in holding that the Ld. CIT(A) has rightly held the denial of exemption u/s 11 of the Act for non-filing of requisite form alongwith return of income, to be not as per law, noting the fact that the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailed to furnish audit report along with return of income as per the requirement of section 12A(1) of the Act, which the ld. CIT(A) reversed, finding that the assessee had indeed filed the audit report though during the assessment proceedings, which tantamount to sufficient compliance of the relevant provisions in order to claim benefit under sections 11 and 12 of the Act. Briefly put, the fact emerges out from orders of the lower authorities are that assessee is a registered charitable trust under section 12A of the Act and engaged in charitable activities for over 40 years. In the return of income for the assessment year 2018-19 assessee declared total income at Rs. 13,54,46,670/-. In the return it had shown business income of Rs. 13,5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apply in relation to the income of any trust or institution unless the person in receipt of income furnishes along with the return of income for the relevant assessment year the audit report in the prescribed form. And the assessee having failed to fulfill the conditions provided in section 12A(1)(b) of the Act, the assessee cannot claim benefit under section 11 and 12. He accordingly supported order of the AO/CPC. 6. The ld. counsel for the assessee, on the other hand, supported the order of the ld. CIT(A). He further submitted that the law in this regard is settled that benefit of exemption under section 11 and 12 should not be denied merely on account of delay in furnishing the audit report, and it would be sufficient compliance, if t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le before the Assessing Officer when he passed the assessment order under section 143(3) on 06.04.2021. The audit report is also available before the CIT(A) during the appellate proceedings. It has been unambiguously held by the jurisdictional Gujarat High Court [CIT v. Gujarat Oil and Allied Industries Ltd. [1993] 201 ITR 325 (Guj.)] that provisions regarding furnishing of audit report with the return have to be treated as a procedural proviso. It is directory in nature and its substantial compliance would suffice. The Hon'ble Court also took the view that the benefit of exemption should not be denied merely on account of delay in furnishing the audit report and it is permissible for the assessee to produce the audit report at a late ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visions so as to deny substantial justice by way of granting exemption. The Hon ble Jurisdictional High Court in a recent decision in Social Security Scheme of GICE Vs. CIT(E) (supra) in the matter of exemption provisions contained in section 11/12 of the Act, requiring filing of Form 10B alongwith return of income for claiming exemption, held the requirement of furnishing of report to be a mandatory requirement while that of filing the report alongwith return of income to be a procedural requirement. Conclusion made by the Hon ble jurisdictional High Court is as under: 5. Having heard learned advocates for the respective parties and having gone through the material on record, the only question which falls for consideration is whet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The issue before us being identical to that as dealt with by the Hon ble jurisdictional High Court the decision rendered therein will squarely apply to the present case. Following the same, we have no hesitation in holding that the Ld. CIT(A) has rightly held the denial of exemption u/s 11 of the Act for non-filing of requisite form alongwith return of income, to be not as per law, noting the fact that the assessee did file the requisite form during regular assessment proceedings and appellate proceedings before him. We, therefore, uphold order of the ld. CIT(A) and reject the grounds of appeal of the Revenue. 9. In the result, the appeal of the Revenue is dismissed. Order pronounced in the Court on 2nd August, 2023 at Ahmeda ..... X X X X Extracts X X X X X X X X Extracts X X X X
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