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TMI Blog2023 (4) TMI 1158X X X X Extracts X X X X X X X X Extracts X X X X ..... cally along with the return of income - As we upheld the order of CIT(A) in dismissing ground No. 1 that no Form 10B was filed by the assessee. In the view of the same, the assessee is not entitled to claim amount in this regard as application of money. Appeal of assessee is dismissed. - ITA No.703/PUN/2022 - - - Dated:- 2-3-2023 - SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER Assessee by : None Revenue by : Shri Ramnath P. Murkunde ORDER PER S.S. VISWANETHRA RAVI, JM : This appeal by the assessee against the order dated 21-07-2022 passed by the National Faceless Appeal Centre, Delhi ( NFAC ) for assessment year 2014-15. 2. We find no representation on behalf of the assessee. Thus, the assessee called absent and set ex-parte. Therefore, we proceed to dispose of the appeal by hearing the ld. DR and perusing the material available on record. 3. We find that this appeal was filed with a delay of 01 day. Upon hearing ld. DR, we condone the said delay. 4. The ground No. 1 raised by the assessee against the order of CIT(A) in not condoning the delay in filing of Form 10B. 5. We note that the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is contended that the appellant is entitled to file the audit report before the completion of assessment and can be furnished at appellate stage also. In support of this contention, the appellant relied on several case laws. All these case laws have been perused and observed that the filing of Form No. 10B alongwith return is directory in nature but the appellant has to show the valid reason for non-submission of audit report alongwith income tax return. For streamlining the delay in filing of audit report in Form 10B by the trust and examining the reason for nonfiling of Form No. 10B in time, the CBDT has delegated the power for accepting the belated audit report to the Income Tax Officer after recording reasons for accepting a belated audit report These grounds relate to the issue of disallowance of exemption u/s 11 and 12 of the Act. However, the appellant failed to submit complete copy of intimation order wherein the reason for disallowance must have been mentioned. Further the appellant also failed to respond to notices for granting the opportunity of being heard. This shows that the appellant does not want to pursue its own appeal. Now coming to the merits of the case, it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Explanation below sub-section (2) of section 288 and the person in receipt of the income is required to furnish along with the return of income for the relevant assessment year the report of such audit in the prescribed form duly signed and verified by such accountant and selling forth such particulars as may be prescribed. 2. As per Rule 17B of the Income-tax Rules, 1962 (hereafter 'Rules, the audit report of the accounts of such a trust or institution is to be furnished in Form no. 10B. As per Rule 12(2) of the Rules, such audit report is to be furnished electronically. The failure to furnish such report in the prescribed form along with the return of income results in disentitlement of the trust from claiming exemption under sections 11 and 12 of the Act. 3. Representations have been received by the Board/field authorities stating that Form no. 10B could not be filed along with the return of income for AY 2016 17 and AY 2017- 18, It has been requested that the delay in filing of Form no: 10B may be condoned. Previously, vide instruction in F.No. 267 /- 82f77- IT(part) dated 09.02.1978, the CBDT had authorized the ITO to accept a belated audit report after rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and setting forth such particulars as may be prescribed. 2. As per Rule 17B of the Income-tax Rules, 1962 (hereafter 'Rules') the audit report of the accounts of such a trust or institution is to be furnished in Form No. 108. As per Rule 12(2) of the Rules, such audit report is to be furnished electronically. The failure to furnish such report in the prescribed from along with the return of income results in disentitlement of the trust or institution from claiming exemption under sections 11 and 12 of the Act. 3. Representations have been received by the Board/field authorities stating that Form No. 10B could not be filed along with the return of income for AY. 2016-17 and AY. 2017-18. It has been requested that the delay in filing of Form No. 10B may be condoned. Previously, vide instruction in F.No. 267/482/77-IT(part) dated 9-2-1978, the CBDT had authorized the ITO to accept a belated audit report after recording reasons in cases where some delay has occurred for reasons beyond the control of the assessee. 4. Accordingly, the CBDT issued Circular No. 10/2019 circulated through F.No. 197/55/2018-ITA-1 in supersession of earlier circular/Instruction issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the appellant, in the present case, had furnished a petition before the CIT for condonation for filing, which is still pending with the CIT. Further, there is no power vested with CIT(A) for condonation of delay in filing Form 1 DB. Since there is no order of CIT(E) condoning the delay in filing Form No. 10B, the appellant is still to be treated as non-compliant of section 12A(1)(b) of the Income Tax Act read with rule 17B of the Income Tax Rule. In view of these facts, I am of the opinion that the appellant is not entitled for the said deduction and accordingly, the denial of exemption u/s 11 of the Act is hereby confirmed. Thus, the ground of appeal is dismissed. 6. In the light of the above as reasons recorded by the CIT(A), we note that for non-compliance of filing Form 10B along with return of income electronically, the assessee failed to show reasonable cause which prevented to file the same along with the return of income. Therefore, we find no infirmity in the order of CIT(A) and it is justified. Thus, ground No. 1 raised by the assessee is dismissed. 7. Ground No. 2 raised by the assessee regarding an amount of Rs.32,91,450/- as income chargeable to tax u/s. 1 ..... 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