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2023 (7) TMI 609 - AT - Income TaxExemption u/s 11 - claim denied as Form 10B was not filed along with the Return of Income - Late filing of Audit Report in Form 10B - HELD THAT - It is an admitted fact that Audit Report in Form 10B was physically filed before the Jurisdictional Assessing Officer (JAO) on 20.05.2014 but the same was uploaded in the ITB Portal on 14.04.2019 after denying the benefit u/s. 11 of the Act. Late filing of Audit Report in Form 10B is considered by the very same Bench of this Tribunal in the case of Shree Charitable Trust 2023 (7) TMI 282 - ITAT AHMEDABAD as held provisions regarding furnishing of audit report along with the return has to be treated as a procedural provision. It is directory in nature and its substantial compliance would suffice. Thus the Hon ble Court Held that the benefit of exemption should not be denied merely on account of delay in furnishing the same. Decided in favour of assessee.
Issues Involved:
1. Adjustment to returned income and denial of Section 11 benefit. 2. Non-deduction of amount applied for charitable/religious purposes. 3. Non-deduction under Section 11(1A). 4. Lack of reasons for adjustments made by CPC. Summary: Adjustment to Returned Income and Denial of Section 11 Benefit: The Assessee, a registered charitable trust under Section 12A, filed its Return of Income for A.Y. 2014-15. The CPC, Bengaluru, denied the benefit of exemption under Section 11 due to the non-filing of the Audit Report in Form 10B along with the Return of Income. The Tribunal noted that the Audit Report was physically filed before the Jurisdictional Assessing Officer (JAO) on 20.05.2014 and later uploaded electronically on 16.04.2019. The Tribunal referenced multiple judgments, including CIT Vs. Gujarat Oil & Allied Industries, to conclude that the filing requirement is procedural, not substantive. Therefore, the Tribunal directed the JAO to verify Form 10B and allow the exemption under Section 11. Non-Deduction of Amount Applied for Charitable/Religious Purposes: The Assessee claimed a deduction of Rs. 37,87,839/- for amounts applied for charitable/religious purposes, which was disallowed by the CPC. The Tribunal, following its rationale on procedural compliance, directed the JAO to verify the claim and allow the deduction as per law. Non-Deduction under Section 11(1A): The Assessee's claim for a deduction of Rs. 7,72,184/- under Section 11(1A) was also disallowed by the CPC. The Tribunal reiterated its stance on procedural compliance and directed the JAO to verify and allow the claim. Lack of Reasons for Adjustments Made by CPC: The Tribunal found that the CPC did not provide reasons for adjustments made to the returned income. The Tribunal set aside the orders of the lower authorities and directed the JAO to re-examine the case, ensuring proper procedural compliance and providing the Assessee an opportunity to present its case. Conclusion: The Tribunal allowed the appeal for statistical purposes, directing the JAO to verify Form 10B and other claims and to allow the exemptions and deductions as per law, providing the Assessee an opportunity to be heard. Order pronounced in the open court on 12-07-2023.
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