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TMI Blog2022 (4) TMI 500X X X X Extracts X X X X X X X X Extracts X X X X ..... e on 30.03.2018. The return was processed u/s 143(1) on 25.03.2019, wherein the Assessing Officer, CPC determined the total income at Rs. 41,24,865/- against the 'Nil' total income declared by the assessee, by making adjustment of Rs. 20,60,000/- on account of donation received; and of Rs. 20,64,885/- by disallowing claims for deduction of Rs. 20,12,451/- towards the amount applied to charitable or religious purpose; and Rs. 52,414/- towards the amount accumulated or set apart for application to charitable or religious purposes to the extent it does not exceed 15% of income derived from property held in trust/institution u/s 11(1)(a)/11(1)(b). The Assessing Officer while processing the return disallowed both these claims by invoking the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e desired compliance in this regard. 3. That on law, facts and circumstances of the case, the Worthy CIT(A) has erred in confirming the action of Ld. AO in not allowing the exemption u/s 11(1) amounting to Rs. 52,414/- claimed by the appellant to the extent it does not exceed 15% of the income derived from property held under trust. 4. That the appellant craves leave for any addition, deletion or amendment in the grounds of appeal on or before the disposal of the same." 6. Learned counsel for the assessee vehemently challenged the order of the learned CIT(Appeals) that the assessee has not filed Audit Report in form no. 10B, although the assessee has duly filed the same and only because of technical latches on the part of website of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled later. 8. Referring to the decision of Hon'ble Calcutta High Court in the case of CIT Vs. Hardeodas Agarwalla Trust 198 ITR 511, learned counsel submitted that the Hon'ble High Court in the said decision has held that filing of audit report u/s 12A(b) along with return is only directory and not mandatory and it is sufficient if assessee filed the audit report before completion of assessment. 9. Learned Counsel also relied on the following decisions: (a) Com of Customs vs. Dilip Kumar & Co. Civil Appeal No. 3327/2007 dtd. 30.07.2018 (SC); (b) Govt. of Kerala & Anr. Vs. Mother Superior Adoration Convent (SC) Civil Appeal No. 202/2012 dtd. 01.03.2021. 10. Learned counsel accordingly submitted that the learned CIT(Appeals) was not j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p; c Name of the auditor (proprietorship/firm) ATUL K GUPTA & ASSOCIATES D Permanent Account Number (PAN) of the proprietorship/firm AAPFA6853Q E Date of audit report 05/06/2017 f Date of furnishing of the audit report (DD/MM/YYYY). 05/06/2017 N If liable to audit under any Act other than the Income-tax Act, mention the Act, section and date of furnishing the audit report? No 13. A perusal of the above shows that assessee has got its accounts audited by the Audit Firm ATUL K GUPTA & ASSOCIATES on 05/06/2017 and the same was furnished along with the return of income. Even otherwise also, the Hon'ble Delhi High Court in the case of CIT Vs. Web Commerce (India) (P) Ltd. (supra), has held that provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es for our consideration. The appeal is dismissed." 14. I find the Hon'ble Calcutta High Court in the case of CIT Vs. Hardeodas Agarwalla Trust (supra) has held as under: "15. In our view, having regard to the object of s. 12A, it cannot be said that the legislature intended that, even where the trust has got its accounts audited and the certificate obtained in Form No. 10B before the assessment is completed, merely because such report could not be filed in the course of the assessment proceedings, it would deprive a trust of getting the exemption if it is otherwise entitled to it in law. As we have already indicated, in this case, the audit report had been obtained before the assessment was completed. The ITO, before completion of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... audit report in the prescribed form which was available with the assessee before the assessment was completed. In such a case, the appeal being a continuation of the original proceedings, the appellate authority has the power to accept the audit report and direct the Assessing Officer to redo the assessment. The appellate authority has plenary powers in disposing of an appeal and the scope of his power is coterminous and co-extensive with that of the Assessing Officer. Fie may, therefore, consider and decide any matter arising out of the proceedings in which the order appealed against is passed. He can do what the Assessing Officer can do and direct him to do what he has failed to do. Such powers are, however, subject to the limitation tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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