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TMI Blog2024 (11) TMI 1212X X X X Extracts X X X X X X X X Extracts X X X X ..... eal of the assessee and thereby upholding the action of the CPC rejecting the rectification application filed by the assessee u/s. 154 of the Income Tax Act, 1961 (hereinafter in short 'the Act') against the order dated 23.08.2022, viz the intimation order of CPC dated 29.11.2021 u/s. 143(1) of the Act. 3. The main grievance of the assessee is that the CPC while processing the return of the assessee for AY 2020-21 had disallowed the exemption u/s. 11 of the Act alleging failure on the part of the assessee to file the Audit Report of the accounts of the Trust (Form 10B) within due time which in this case was 15.02.2021 and the assessee belatedly filed the same within '32' days on 20.03.2021 (refer rectification order u/s. 154 of the CPC). A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rgeable to income-tax. However, there is no clarity as to whether the said return of income is to be filed within time allowed u/s. 139 of the Act or otherwise. In order to provide clarity in this regard, it is proposed to further amend section 12A so as to provide for further condition that the person in receipt of the income chargeable to income tax shall furnish the return of income within the time allowed under section 139 of the Acts. These amendments are clarificatory in nature. And according to the Ld.AR, the amendments are clarificatory in nature and submitted that neither in sec.12A(1)(ba) nor in the Budget Memorandum to Finance Bill, 2017, there is any mention about time-line under sec.139(1) or within due date u/s. 139(1) has be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed as due compliance to Section 12A(1)(ba) - Whether in view of said order of Tribunal, assessee was entitled for exemption under section 11-Held, yes [Paras 4 and 5] [In favour of assessee]'. Citing the aforesaid decision of Tribunal, Ld AR prayed that sec.11 exemption may be granted. 4. Per contra, the Ld.DR drew our attention to the Circular F. No.173/193/2019 ITAI, dated 23-4-2019 which empowers the Ld.CIT to condone the delay up to '365' days in filing Form 10AB (Audit Report) as per Rule 17 of Income Tax Rules, 1962 (hereinafter in short "the Rules") and direct admitting such belated application by condoning the delay. Therefore, he wants us to direct the assessee to file application before the Commissioner to condone the delay of '3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time. The Ld.CIT has been delegated the powers by CBDT to condone the delay. Be that as it may, we note that in this case, assessee Trust has filed return along with Audit Report ('32' days delay) before the CPC and it had processed the return of the assessee. Therefore, taking into consideration sec.12A(1)(ba) r.w.s.139(4A), we are of the view that the CPC ought not to have denied exemption u/s. 11 of the Act without giving proper opportunity as stipulated by first proviso to sec.143(1) of the Act. Since, there is violation of natural justice and the assessee has complied with stipulation of filing Audit Report which was very well before the CPC, the impugned action of the CPC can't be legally sustained. Therefore, we set aside the impugne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been received by the Board/field authorities stating that Form No. 10B could not be filed along with the return of income for A.Y. 2016-17 and A.Y. 2017-18. It has been requested that the delay in filing of Form No. 10B may be condoned. Previously, vide instruction in F.No. 267/482/77-IT(part) dated 9-2-1978, the CBDT had authorized the ITO to accept a belated audit report after recording reasons in cases where some delay has occurred for reasons beyond the control of the assessee. 4. Accordingly, the CBDT issued Circular No. 10/2019 circulated through F.No. 197/55/2018-ITA-I in supersession of earlier circular/Instruction issued in this regard, and with a view to expedite the disposal of applications filed by such trust or institution fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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