9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (2) TMI 1310 - AT - Income TaxDenial of exemption u/s 11 - audit report has required under Form 10B was not uploaded at the time of filing the return of income - assessee realise its mistake on receipt of intimation u/s 143(1) and assessee uploaded the audit report in Form 10B and filed application under section 154 for correcting/rectification in the intimation u/s 143(1) - HELD THAT - We find that the Hon ble jurisdictional High Court in case of CIT vs. Xavier Kalavani Mandal (P.) Ltd 2012 (9) TMI 1049 - GUJARAT HIGH COURT held that in order to claim exemption under section 11 the assessee can filed audit report in Form 10B even at later stage either before the Assessing Officer or before appellate authority by showing a sufficient cause. In case of Sarvodaya charitable Trust 2021 (1) TMI 214 - GUJARAT HIGH COURT held that where the assessee is a public charitable trust registered under section 12A of the Act and substantially satisfied condition for availing benefit of exemption as a charitable could not be denied exemption the assessee merely on bar of limitation in furnishing audit report in Form 10B. Considering all we find that though the assessee has not filed any return of income at the time however it was available before the ld. CIT(A) as it was uploaded much before filing application under section 154. Therefore we find that the assessee has complied the procedural requirement therefore the Assessing Officer/CPC is directed to verify the claim of the assessee and grant necessary deduction under section 11 of IT Act. In the result the appeal of the assessee is allowed for statistical purposes.
Issues involved:
1. Rejection of rectification application under section 154 of the Act. 2. Disallowance of deduction towards application of income claimed by the assessee. 3. Compliance with procedural requirements for claiming exemption under section 11 of the Income Tax Act. Issue 1: Rejection of rectification application under section 154 of the Act: The assessee, a charitable trust, filed a rectification application under section 154 of the Act after the Assessing Officer/CPC disallowed a deduction under section 11 due to the non-furnishing of the audit report in Form 10B. The application was rejected by the Assessing Officer/CPC on the grounds of no prima facie error in the original order. The assessee contended that the audit report was filed electronically before the rectification request, but the rejection was upheld by the ld. CIT(A). The Tribunal noted that the audit report was uploaded before the rectification application, fulfilling the procedural requirement. Citing relevant case laws, the Tribunal directed the Assessing Officer/CPC to verify the claim and grant the necessary deduction under section 11. Issue 2: Disallowance of deduction towards application of income claimed by the assessee: The Assessing Officer/CPC disallowed the exemption under section 11 as the audit report in Form 10B was not furnished by the assessee. The ld. CIT(A) upheld this decision, stating that the required audit report was not filed, justifying the rejection of the rectification application. However, the Tribunal, considering the submissions and legal precedents, found that the assessee had complied with the procedural requirement by uploading the audit report before the rectification application. Therefore, the Tribunal allowed the appeal for statistical purposes, directing the Assessing Officer/CPC to grant the necessary deduction under section 11 of the Income Tax Act. Issue 3: Compliance with procedural requirements for claiming exemption under section 11 of the Income Tax Act: The Tribunal emphasized that the assessee, a charitable trust, had uploaded the audit report in Form 10B before filing the rectification application, fulfilling the procedural requirement for claiming exemption under section 11. By referring to relevant case laws, the Tribunal concluded that the assessee had shown sufficient cause for the delayed filing of the audit report and directed the Assessing Officer/CPC to verify and allow the deduction under section 11. The Tribunal's decision was based on the compliance with procedural requirements and legal precedents, ensuring that the assessee's claim for exemption was considered appropriately.
|
