9911796707
TMI Blog2023 (4) TMI 1222X X X X Extracts X X X X X X X X Extracts X X X X ..... eturn of Income is merely a procedural defect which is rectifiable. If the Audit Report was available with the assessee at the time of filing of Return of Income and was not filed due to bona fide reasons the benefit of exemption under section 11 cannot be denied if otherwise assessee is eligible to claim the same - late filing of required documents would not disentitle the assessee from availing benefit of section 11 of the Act. Thus the assessee can t be denied the benefit of exemption u/s 11 as claimed in the return of income for mere delay in filing of audit-report. We, therefore, deem it fit to remand this matter back to the file of AO for a fresh assessment. Appeal of assessee is allowed for statistical purpose. X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee filed rectification-application u/s 154 requesting the AO to allow exemption as claimed in return of income. But the AO rejected assessee's request vide order dated 11.04.2019; thus the exemption is again denied. Getting no success at the level of AO, the assessee went in first-appeal to CIT(A). But even at that stage, the assessee did not get any relief. Now, the assessee has come in this appeal before us. 5. Ld. AR submitted that the assessee is engaged in religious activities; that the registration granted to it by tax authorities u/s 12A was in force; that the assessee had been granted benefit of section 11/12 in preceding assessment-years as well as subsequent assessment-years. He further submitted that the assessee filed r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cision of ITAT in Savitri Foundation Vs. ITO, ITA No. 1925/Mum/2021 (AY 2018-19) order dated 01.08.2022 wherein the AO made processing of return u/s 143(1) denying exemption u/s 11 to assessee for the very same reason of non-uploading of audit report before filing of return but subsequently the assessee uploaded audit-report during the course of first-appeal; when the matter reached ITAT, the Mumbai Bench has allowed exemption to assessee. Ld. AR submitted that the decision taken by ITAT is directly applicable to assessee. Ld. AR also relied upon following decisions in support of the same proposition: (i) ITAT, Jodhpur Bench in ITO, Exemption Ward Vs. Society for Education Conscietisation Awareness & Training, ITA No. 461/Jodh/2018 dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion under section 11 of the Act has been denied to the assessee for the reason that assessee has failed to furnish audit report along with return of income. The contention of the ld. Authorized Representative of the assessee is that the audit report was available with the assessee at the time of filing of return of income however due to inadvertent error the assessee failed to upload Audit Report in Form 10B along with e-filing of return of income. Non-filing of Audit Report is a bona fide error. The assessee has placed on record Audit Report dated 19/10/2018 in the prescribed Form 10B at page 15 of the Paper Book. The assessee after receiving the intimation under section 143(1) of the Act uploaded the Audit Report on 18/04/2020 in First A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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