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2022 (11) TMI 1370 - AT - Income TaxExemption u/s 11 - Filing of belated Form No.10B - As per revenue necessary statutory conditions were not made and the Trust is not eligible for exemption - HELD THAT - It is pertinent to note that except filing of belated Form No.10B, all the relevant conditions were fulfilled by the assessee as the Trust is registered under Section 12AA of the Act w.e.f. 26.03.2010. The Tribunal, in the case of Audyogik Shikshan Mandal 2022 (3) TMI 470 - ITAT PUNE clearly observed that if Form No.10B is available on record, the same should be taken into account and exemption cannot be denied to the assessee under Section 11 of the Act. In the present case also the assessee has fulfilled all the relevant conditions which are required for claiming exemption except filing Form No.10B and Audit Report at the relevant time but the same was filed at a later stage and was available with the CIT(A) as well as before the Assessing officer. Therefore, AO as well as the CIT(A) was not right in making addition and denying the exemption under Section 11 of the Act. Appeal of the assessee allowed.
Issues:
1. Addition of Rs.6,86,910 on account of best judgment assessment under Section 144 of Income Tax Act, 1961. 2. Rejection of appeal by CIT(A) for not appreciating submissions made by the Appellant. 3. Charging of interest under Section 234B & C by the Assessing Officer. Analysis: Issue 1: The assessee, a public trust registered under the Bombay Public Trust Act, 1950, filed its income tax return for the Assessment Year 2014-15 declaring a total income of Rs.32,300. The Assessing Officer completed the assessment under Section 143(3) of the Income Tax Act, 1961, on 07.12.2016, making an addition of Rs.7,19,210 in respect of gross receipts as per the income and expenditure account. The assessment was done ex-parte as a best judgment assessment under Section 144 of the Act. Issue 2: The assessee, being dissatisfied with the assessment order, filed an appeal before the CIT(A). However, the CIT(A) dismissed the appeal on the grounds that necessary statutory conditions were not met and the Trust was deemed ineligible for exemption under Section 11 of the Act. Issue 3: During the appeal, the Appellant argued that despite a belated filing of Form no.10B, all relevant conditions for exemption under Section 11 were fulfilled as the Trust was registered under Section 12AA of the Act since 26.03.2010. The Appellant cited a decision by ITAT Pune Bench in a similar case, emphasizing that if Form no.10B is available on record, exemption cannot be denied. The Tribunal noted that the Appellant had met all conditions required for claiming exemption, except for the delayed filing of Form no.10B and Audit Report, which were eventually submitted and available to both the CIT(A) and the Assessing Officer. Consequently, the Assessing Officer and the CIT(A) were deemed incorrect in making the addition and denying the exemption under Section 11. The appeal of the assessee was allowed based on this analysis. In conclusion, the Appellate Tribunal ITAT Ahmedabad, in the judgment delivered by Ms. Suchitra Kamble, allowed the appeal filed by the Assessee against the order of the CIT(A)-5, Vadodara for the Assessment Year 2014-15. The Tribunal found that the Assessing Officer and the CIT(A) erred in making the addition and denying the exemption under Section 11 of the Act, as the Appellant had fulfilled all relevant conditions except for the delayed filing of Form no.10B. The judgment emphasized the importance of considering all relevant materials and conditions before making assessments and decisions regarding exemptions under the Income Tax Act, 1961.
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