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2023 (6) TMI 1279 - AT - Income TaxDenying the exemption u/s. 11 - non-filing of Auditor s Report in Form No. 10B along with the return of income - HELD THAT - In the present case clearly shows the audit report itself was dated 21-11-2018 which demonstrates that at the time of filing return of income audit report was not ready, consequently we can say the claim u/s. 11 was not quantified. We note that it is a substantial failure of the assessee in getting the books of account audited before prescribed due date and also before filing the return of income. Thus, there is no dispute, the audit report was not ready before filing return of income, in the absence of which the assessee however, claimed exemption u/s. 11 of the Act without auditor s quantification. Thus, no infirmity in the order of NFAC, Delhi in confirming the intimation issued by the CPC, Bangalore u/s. 143(1) of the Act denying the exemption u/s. 11 of the Act. Thus, the grounds raised by the assessee fails and are dismissed.
Issues Involved:
The issue in consideration is whether the denial of exemption under section 11 of the Act by the National Faceless Appeal Centre, Delhi was justified due to the non-filing of Auditor's Report in Form No. 10B along with the return of income for the assessment year 2018-19. Details of the Judgment: Issue 1: Denial of Exemption under Section 11 of the Act - The assessee, a charitable trust operating an English Medium School, filed a return of income for the relevant year declaring total income as Nil. - The denial of exemption under section 11 of the Act was based on the non-filing of Auditor's Report in Form No. 10B with the return of income. - The contention was raised that due to lack of internet services in the remote village where the trust was located, the Auditor's Report could not be uploaded along with the return. - The assessee argued that the non-filing of the report was not intentional or willful. - The assessee cited legal precedents from the Hon'ble High Courts of Calcutta and Gujarat to support the argument that the audit report could have been submitted at a later stage. - The Tribunal noted that the audit report was dated after the filing of the return, indicating a failure on the part of the assessee to have the report ready before filing the return. - Based on the facts presented, the Tribunal found no justification to overturn the denial of exemption under section 11 of the Act. - The Tribunal dismissed the appeal, upholding the decision of the National Faceless Appeal Centre, Delhi. Separate Judgment: - The appeal by the assessee against the order of the National Faceless Appeal Centre, Delhi was dismissed, affirming the denial of exemption under section 11 of the Act due to the non-filing of Auditor's Report in Form No. 10B along with the return of income for the assessment year 2018-19. - The Tribunal considered legal arguments, precedents, and the timing of the audit report submission in reaching the decision to uphold the denial of exemption. - The Tribunal emphasized the importance of complying with procedural requirements and having the necessary documentation ready before filing the return of income. - The decision highlighted the significance of timely submission of audit reports in claiming exemptions under the relevant provisions of the Act. - The Tribunal concluded that the denial of exemption was justified in the absence of the Auditor's Report filed along with the return of income. - The appeal was dismissed, and the order of the National Faceless Appeal Centre, Delhi was upheld.
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