9911796707
|
Home
Issues:
- Entitlement to exemption under section 11 without filing audit report in Form No. 10B along with the return for the assessment year 1983-84. Detailed Analysis: 1. The assessee, being an association claiming exemption under section 11 as a charitable association registered under section 12A, was denied the exemption by the Assessing Officer due to the non-filing of the audit report in Form No. 10B along with the return for the assessment year 1983-84. 2. The Commissioner of Income-tax (Appeals) upheld the denial of exemption, leading the assessee to appeal before the Tribunal, which directed the Income-tax Officer to make a fresh assessment considering the Form No. 10B reportedly filed during the assessment proceedings. 3. However, upon re-assessment, the Income-tax Officer found no record of the audit report being filed during the original assessment stage, leading to a second denial of exemption under section 11, citing non-fulfillment of conditions under section 12A(b). 4. The subsequent appeal by the assessee included the submission of the audit report in Form No. 10B filed along with a letter addressed to the Assessing Officer after the second assessment order was passed, emphasizing that the report should be considered despite the timing of its submission. 5. The Tribunal referred to a previous decision highlighting that a report filed before the completion of the assessment by the Income-tax Officer is valid for consideration under section 11, emphasizing that denial of exemption solely based on procedural formalities is unwarranted. 6. The Tribunal noted that the whole assessment being set aside meant the Income-tax Officer had the same powers and scope as in the original assessment, as per precedents from various High Courts, allowing for a fresh assessment without restrictions. 7. Emphasizing that the audit report is crucial for determining the assessee's entitlement and that filing it before the assessment is a procedural formality, the Tribunal directed a fresh assessment considering the audit report now filed, ensuring the assessee's right to be heard in the matter. 8. Ultimately, the impugned orders were set aside, and the Income-tax Officer was directed to conduct a fresh assessment, taking into account the audit report and following the directions provided in the Tribunal's order, allowing the appeal for statistical purposes.
|
