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2024 (11) TMI 382 - AT - Income Tax


Issues:
1. Denial of exemption under Section 11 of the Income-tax Act due to delay in filing audit report in form 10B.

Detailed Analysis:

Issue 1: Denial of exemption under Section 11 due to delay in filing audit report in form 10B

The appeal was against the order of the Commissioner of Income-tax (Appeals) confirming the denial of exemption under Section 11 of the Income-tax Act due to the late filing of the audit report in form 10B. The assessee contended that although the return of income was filed within the prescribed time limit, technical glitches led to the delayed uploading of the audit report. The Tribunal referred to previous decisions where it was held that filing form 10B is a procedural requirement and any defect therein is curable. The Departmental Representative supported the lower authorities' orders.

The Tribunal observed that the assessee, a trust, filed the income tax return within the prescribed time limit but the audit report on form 10B was e-filed belatedly. The assessee had also filed a condonation petition for the delay, which was not granted until the impugned order was framed. Citing previous Tribunal decisions, the Tribunal held that the delay in filing form 10B was curable and directed the Assessing Officer to allow the exemption under Section 11 if the assessee was otherwise eligible.

In another case dealt with by the Tribunal, similar facts were presented, and relief was granted to the assessee based on the procedural nature of filing the audit report. The Tribunal emphasized that the substantial compliance of filing the audit report suffices, and the delay in this case was attributed to technical glitches. The Tribunal, following previous judgments, allowed the appeal and directed the Assessing Officer to grant the benefit of Section 11 to the assessee.

In conclusion, the Tribunal allowed the appeal of the assessee, setting aside the findings of the Commissioner of Income-tax (Appeals) and directing the Assessing Officer to grant the benefit of Section 11 if the assessee met the eligibility criteria. The decision was pronounced in open court on 28th August, 2024.

 

 

 

 

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