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TMI Blog2024 (9) TMI 142X X X X Extracts X X X X X X X X Extracts X X X X ..... be impediment in law in claiming the exemption. So far the reason for condonation of delay is concerned, AR submitted that the Auditors who conducted the audit of the society, bonafidely believed that society was not required to obtain and file the audit report in form 10B as the total income being NIL was less than Rs. 2,50,000/- and due to confusion in interpretation of law, filed audit report in form 10B dated 08.10.2022. We inclined to allow this appeal for condoning the delay in filing the Audit Report in Form 10B and restore the matter to the file of the CIT(A) to allow exemption u/s 11 of the Act to assessee and pass order in accordance with law. Assessee appeal allowed. - Shri S Rifaur Rahman, Accountant Member And Shri Sudhir Par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the delay in filing Form 10B and to claim the benefits of Sections 11 and 12 of the Act. Being aggrieved with the above order passed by the Ld. CIT(A), this appeal filed by assessee for adjudication. 4. Heard rival submissions and carefully scanned the material before us. 5. In the course of hearing, the Ld. AR while reiterating the grounds of appeal, submitted that the assessee is a charitable society registered under the Societies Registration Act, 1860. The society operates a recognized primary school, New Vidhya Vihar Model School, in Delhi. For the A.Y. 2021-22, the society filed a return of income declaring NIL income. During the year total receipts of the society from trust activities aggregated to Rs. 39,32,700/- which consisted of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Sr. Departmental Representative ( Ld. Sr. DR) relied upon orders passed by both the lower authorities. 7. By bare perusal of impugned order passed by the Ld. CIT(A), observed as under: 7.1 Further, Section 119 empowers the Board to issue orders and guidelines regarding the condonation of delay in compliance with any provision of the Act. Section 119(2) reads as follows: Section 119(2) (a) ... (b) the Board may, if it considers it desirable or expedient so to do for avoiding genuine hardship in any case or class of cases, by general or special order, authorise any income-tax authority, not being a Joint Commissioner (Appeals) or a Commissioner (Appeals) to admit an application or claim for any exemption, deduction, refund or any other reli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ef Commissioner/ Chief Commissioner or Commissioners of Income-tax, as the case may be, while entertaining such applications for condonation of delay in filing Form No. 10B, shall satisfy themselves that the applicant was prevented by reasonable cause from filing such Form within the stipulated time. 4. Further, the Pr. Chief Commissioner/Chief Commissioner of Income-tax, as the case may be, shall preferably dispose the application within three months of receipt of the application. 7.3 It is evident from the CBDT Circulars and Section 119(2)(b) of the Act that the Assessing Officer (AO), Joint Commissioner of Income Tax (Appeals) [JCIT(A)], and Commissioner of Income Tax (Appeals) [CIT(A)] do not have the authority under Section 119(2)(b) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this context, similar matter has decided in the favour of assessee in the case of Hari Gyan Pracharak Trust vs. DCIT vide ITA No. 245/Ahd/2021 order dated 16.06.2023 by observing as under: 7. We have carefully considered the order passed by the authorities below and the judgment passed by the Hon'ble Jurisdictional High Court in case of Association of Indian Panelboard Manufacturer (supra) on the issue involved. While passing order in favour of the assessee, the Hon'ble Jurisdictional High Court has been pleased to observe as follows: 5.6 The Tribunal further committed an error in appreciating the import of Section 1192(b) of the Act inasmuch as the application contemplated hereunder is only a remedy for the assessee which could no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eged ground of non-filing of audit report alongwith return of income which was at the best procedural omission, could never to an impediment in law in claiming the exemption. 6.2 Accordingly the substantial questions of law have to be decided in favor of the appellant. 7. They are accordingly decided. The appeal is allowed. 8. In view of the ratio laid down by the Hon'ble Jurisdictional High Court holding that non filing of Audit Report along with return of income is a procedural omission and cannot be an impediment in law in claiming the exemption, we allow this appeal condoning the delay in filing the Audit Report in Form No. 10B. However, we also upon condoning the delay, restore the matter to the file of the Ld. CIT(A) to pass order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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