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TMI Blog2024 (10) TMI 664X X X X Extracts X X X X X X X X Extracts X X X X ..... tantial question of law arises. - HONOURABLE MR. JUSTICE BHARGAV D. KARIA AND HONOURABLE MRS. JUSTICE MAUNA M. BHATT Appearance: For the Appellant(s) No. 1 : Ms Maithili D Mehta (3206). ORAL ORDER (PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA) 1. This Tax Appeal filed under Section 260A of the Income Tax Act, 1961 ( the Act for short). The appellant revenue has proposed the following questions of law arising out of the order dated 07.02.2024 passed by the Income Tax Appellate Tribunal, Ahmedabad Bench (for short the Tribunal ) in ITA No. 695/Ahd/2023 for Assessment Year 2021-2022: (i) Whether in the law and facts and circumstances of case, Hon ble Income Tax Appellate Tribunal was right in holding that furnishing of audit report in form ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee did not filed the requisite form 10B along with the return of income and the CPC assessed the total taxable income entirely by making addition by dis-allowing the exemption claimed by the assessee under Sections 11 and 12 of the Act which raised the demand of Rs. 8,59,78,930/-. 5. Being aggrieved, the assessee preferred an appeal before the Commissioner of Income Tax, National Faceless Appeal Centre (NFAC) who vide order dated 09.08.2023 dismissed the appeal filed by the assessee. The assessee, therefore, preferred an appeal before the Tribunal who by impugned order dated 07.02.2024 allowed the appeal relying upon the decision of this Court in the case of Association of Indian Panel Board Manufacturer vs. DCIT reported in [2023] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee, following the decision of the Hon'ble Bombay High Court in the case of CIT vs Xavier Kalavani Mandal (P) Ltd which held that even if form 10B is filed at a later stage exemption cannot be denied u/s 11 of the Act. The relevant portion of the order is as under:- 9. In the present case, it is undisputed that the assessee trust is registered under section 12AA of the Act for the past 40 years and the said registration is still in existence. It is also not the case of the Revenue that the assessee has ceased to be a religious or charitable institution. Further, it is also not the case of the Revenue that the accounts of the assessee have not been audited by an accountant, and an audit report in Form 10B has not been obtained. O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urisdictional High Court in case of CIT v. Xavier Kalavani Mandal (P.) Ltd. (supra) held that in order to claim exemption under section 11, the assessee can filed audit report in Form 10B even at later stage either before the Assessing Officer or before appellate authority by showing a sufficient cause. Further, Hon'ble jurisdictional High Court decision in case of Sarvodaya charitable Trust v. ITO (Exemption) (supra) also held that where the assessee is a public charitable trust registered under section 12A of the Act and substantially satisfied condition for availing benefit of exemption as a charitable could not be denied exemption, the assessee merely on bar of limitation in furnishing audit report in Form 10B. Considering the afore ..... X X X X Extracts X X X X X X X X Extracts X X X X
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