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TMI Blog2025 (1) TMI 1121X X X X Extracts X X X X X X X X Extracts X X X X ..... orm 10B before the ld. CIT(A) and made a detailed submissions. It was submitted that the Form 10B was issued by the auditor on 16.06.2016 and ITR was filed by the assessee on 28.07.2016 declaring nil income after claiming deduction u/s 11(1)(a) to the extent of Rs. 13,38,326/- being income applied for charitable purpose and balance amount of Rs. 2,31,334/- was claimed as deduction. It was submitted that Form 10B could not be filed along with return of income due to technical glitches/issues at on IT Portal for online filing of form and relied on several decisions. After considering the submissions of the assessee, ld. CIT (A) rejected the plea and sustained the addition made by the AO u/s 143(1)(a) of the Act. 4. Aggrieved, assessee is in appeal before us raising following grounds of appeal :- "1. A). The LD CTT(A) has erred in law and on the facts in denying the application of funds application towards the objects of the trust amounting to Rs13,38,326/- u/s 11 being Form No.10B ignoring the fact that Form No.10B could not be filed before filing of return due to glitches/issues at the IT portal. The issue at IT portal was acknowledged by the department and therefore allowing con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Form 10B and the ITR in time and always abide by law. There could not be any intention to follow incorrect procedure for AY 2016-17, when the assessee followed the correct procedure in earlier years and in the subsequent years. 5.2 He submitted that there are number of judicial pronouncements by various High Courts and Tribunals on this issue that belated form 10B can also be filed and the exemption u/s 11 should not be denied to the public charitable trust on account of late filing of Form 10B and relied on plethora of judgements. 5.3 The assessee further submitted that the CBDT has issued a Circular No.10 (F.No.197/55/2018) dated 22.5.2019, condoning the delay in filing the audit report provided the same is filed before the due date for filing the return of income u/s 139(1) of the Act. Accordingly, the assessee submitted before the ld. CIT(A) that the assessee should be allowed deduction towards application and accumulation of funds as claimed. 5.4 He further submitted that the copy of Form No 10B obtained from the auditors of the trust was received on 16.06.2016 and reliance is placed on the decisions of CIT vs. Shahzedanand Charity Trust, 228 ITR 292 (P&H); CIT vs. Jay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmitted that in the case of the assessee, it is not in dispute that the audit report in prescribed form was obtained prior to filing of the return on 28.07.2016, therefore, there was no reason for the assessee to keep the audit report with it in order to loose the exemption. He further submitted that the assessee in the earlier as well as in the subsequent assessment years filed the audit report and got the exemption. He submitted that the conduct of the assessee in earlier year and subsequent years would prove that due to the facts stated above, there was delay in filing the audit report and the contention of the assessee is duly supported with the medical records of the main trustee filed with his submissions and on proper appreciation of the facts and material on record in the light of the decisions of the Hon'ble High Courts, the AO may be directed to accept the audit report of the assessee and grant exemption u/s 11 of the Act. 5.8 He further submitted that the Hon'ble Bombay High Court in case of CIT Vs Sakai Relief Fund 2017 (4) TMI 772 held that Tribunal justified in holding that Form 10 prescribed in terms of Rule 17 of Income Tax Rules for the purpose of Section 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have gone through the decisions relied upon by the assessee. In this regard, we observed that the ITAT, Delhi, on the same facts, in the case of ACIT vs. Green Dot Health Foods Pvt. Ltd. in ITA No.8414/Del/ 2019 dated 06.02.2023 decided the issue in favour of the assessee relying on the decision of Hon'ble Delhi High Court in the case of CIT vs. Contimeters Electrical (P) Ltd. (2009) 178 taxman 422 (Delhi). We also find that in the case of Green Dot Health Foods Pvt. Ltd. (supra), the coordinate Bench has considered the exact similar case and allowed the claim by observing as under :- "7. We have heard the rival submissions and perused the material available on record. The issue in the present ground is about the denial of claim of deduction u/s 80IC of the Act by AO but allowing the claim of the assessee by CIT(A). The only reason for denying the claim of deduction u/s 80IC of the Act by AO was that the Form 10CCS was uploaded by the assessee on the website of the Income-tax Department on 10.11.2017 whereas the return of income was filed on 24.10.2017 and the return of income was processed u/s 143(1) of the Act on 30.10.2018. We find that CIT(A) while deciding the issue in favou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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