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2024 (6) TMI 735 - AT - Income TaxIssues Involved: 1. Exemption u/s 11 of the Income Tax Act. 2. Adjustment u/s 143(1) of the Income Tax Act. 3. Levy of fee u/s 234F of the Income Tax Act. Summary: Issue 1: Exemption u/s 11 of the Income Tax Act The assessee appealed against the denial of exemption of Rs. 32,98,068/- u/s 11 due to the late filing of the audit report (Form 10B). The audit report was signed before the due date but filed late on the Income Tax portal. The CIT(A) upheld the denial, citing that Form 10B was not filed before the due date of filing the return of income. The Tribunal referred to several judicial precedents, including the cases of Shree Jain Swetamber Murtipujak Tapagachha Sangh v CIT and Social Security Scheme of GICEA v. CIT, which supported the assessee's contention that the exemption should not be denied if the audit report is filed before the assessment order is passed. The Tribunal concluded that the claim of application of income cannot be denied solely on the ground of late filing of Form 10B and allowed the appeal. Issue 2: Adjustment u/s 143(1) of the Income Tax Act The adjustment of Rs. 32,98,068/- was made u/s 143(1) due to the late filing of the audit report. The Tribunal noted that the audit report was filed before the intimation u/s 143(1) was issued. Citing various judicial precedents, the Tribunal held that the application of income should not be denied if the audit report is filed before the assessment order is passed. Therefore, the Tribunal allowed the appeal on this ground as well. Issue 3: Levy of Fee u/s 234F of the Income Tax Act The assessee challenged the levy of a fee of Rs. 5000/- u/s 234F for delayed filing of the income tax return. The Tribunal observed that the due date for filing the return was 30th September 2018, and the assessee had filed the return on 26th September 2018. Since the return was filed within the prescribed time limit, the Tribunal held that section 234F was not applicable and allowed the additional ground of appeal. Conclusion: The Tribunal allowed the appeal of the assessee on all grounds, including the exemption u/s 11, adjustment u/s 143(1), and the levy of fee u/s 234F. The order was pronounced in the open court on 14-06-2024.
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