2010 (7) TMI 1114 - AT - Income Tax

Summary

Issues involved: Appeal against deletion of addition made on account of donation for earthquake relief u/s.12(3) of the Income-tax Act.

Summary:
The appeal was filed by the Revenue challenging the deletion of an addition made on account of a donation for earthquake relief u/s.12(3) of the Income-tax Act. The Assessing Officer had denied the exemption as the assessee failed to file audit accounts by the specified deadline. However, the CIT(A) allowed the appeal, citing various High Court decisions that supported the filing of audit reports as directory, not mandatory. The appellant trust submitted the required documents, including the audit report, before the Assessing Officer and during the appellate proceedings. The CIT(A) concluded that the conditions under section 80G(5C) were fulfilled, and thus, section 12(3) could not be invoked.

Upon hearing the submissions, the Tribunal noted that the assessee had filed the necessary forms and documents with the Assessing Officer. The Tribunal referenced previous decisions and found no error in the CIT(A)'s decision. The Revenue raised concerns about verifying the charitable activity at the assessment stage, but the assessee's representative presented tribunal orders from previous years supporting the assessee's entitlement to exemption u/s.11 of the Income-tax Act. Given the background and previous rulings, the Tribunal dismissed the Revenue's appeal, finding no grounds for interference.

Therefore, the Tribunal upheld the CIT(A)'s decision and dismissed the Revenue's appeal, concluding that the assessee was entitled to the exemption under the Income-tax Act.