TMI Blog1992 (4) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... at Rs. 5,18,210. The Assessing Officer refused the benefit of exemption under section 11 of the Act for the simple reason that the appellant had violated the provisions of section 12A(b) of the Act as it had not filed the audit report in Form No. 10B along with its return of income filed on 30-9-1986. He computed the income at Rs. 5,81,210 with reference to the figures found in the audited statements submitted with the return of income. 3. The CIT (Appeals) to whom the assessee appealed, agreed with the Assessing Officer and upheld the assessment. According to him. The provisions of section 12A(b) are mandatory and that the assessee's failure to file the audit report in Form No. 10B along with its return of income, disentitled it to the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vour of the assessee :-- " Whether on the facts and in the circumstances of the case and having regard to the provisions of sections 12A, 139(5), 139(9), 292(B) and the Scheme of Income-tax Act as a whole, was the Tribunal right in law in holding that the lower authorities were not correct in denying exemption under section 10 to the assessee for the assessment year 1984-85 ?" A copy of this judgment has been filed by the assessee's learned counsel at pages 68 to 79 of the paper book. Their Lordships of the Calcutta High Court have rejected the Revenue's contention for applying the rule of strict and literal construction or for consideration the provisions of section 12A in isolation. Their Lordships have held as follows in the course ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o what the ITO can do and can also direct him to do what he has failed to do. This position is now well settled by the decision of the Supreme Court in the case of CIT v. Kanpur Coal Syndicate [1964] 53 ITR 225. The Calcutta High Court had followed this decision of the Supreme Court in CIT v. Ganga Jamuna [1986] 157 ITR 225. 8. A perusal of the facts of the case from the papers in the paper book, shows that the assessee is registered society under the Societies Registration Act, that it had come into existence on the 4th day of August, 1958 and it has been recognised as a charitable institution, as could be seen from the communication received by the assessee from the ITO Refund Circle, 3, Government Place West, Calcutta dated 23-5-1968 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the revised return. The learned counsel next invited our attention to the letter dated 23-9-1987 at page 47 of the paper book, calling upon the assessee to produce its books of account and other necessary documents, on 28-9-1987. He next pointed out that G. Basu Co., who are the Chartered Accountants of the appellant-association, had replied on 28-9-1987 that it was not possible for them to furnish all the details called for by the ITO. However, they furnished three items that were available in their records and stated that they were unable to furnish the other particulars as the assessee's office was closed from 26-9-1987 to 6-10-1987. The learned counsel pointed out that this period 26-9-1987 to 6-10-1987 was a period of Puja holiday ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pparently, the Assessing Officer had proceeded under an erroneous impression that the assessment was getting time barred overlooking the revised return filed by the assessee on 30-3-1987. As rightly contended on behalf of the assessee by Shri Bajoria, there is no earthly reason for the failure of the appellant to file the audit report in Form No. 10B along with its return of income or its revised return of income particularly when it has been signed on the same day, viz., 9-5-1984 when the audited statements were also signed. Apparently, the omission on the part of the appellant or its authorised representative seems to be due to some inadvertence or oversight. The Commissioner himself in paragraph 4 of his order recognises that some relaxa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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