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TMI Blog2024 (11) TMI 224X X X X Extracts X X X X X X X X Extracts X X X X ..... Act for the sole reason that the AO did not file the audit report prescribed in Form No. 10B of the Act on or before the due date. The said due date in the case of the assessee under the provisions of section 12A(1)(b) of the Act was 07.10.2022 however, the assessee has e-filed the said Form No. 10B on 07.11.2022 and thus, there was a delay of 31 days in filing such form on the Income-tax Portal. Therefore, the issue is merely for the condonation of the delay of the 31 days. We find that the Ld. CIT(A) has referred to Circular No. 16/2022 dated 19.07.2022 issued by the CBDT, where in the CBDT invoking powers u/s 119(2)(b) of the Act delegated the power for condoning the delay to the Pr. Chief Commissioner/Chief Commissioner or Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, Bangalore (herein after referred to as the AO) on the grounds that the Appellant did not furnish Audit Report in Form 10-B within the prescribed time. 2. The learned CIT(Appeals) failed to appreciate that mere delayed filing of the Audit Report in Form 10-B cannot be fatal in as much as the benefits of Section 11 cannot be denied on this solitary ground. The learned CIT(Appeals) failed to appreciate the ratio of various judicial pronouncements in this behalf. 3. The learned CIT(Appeals) failed to appreciate that the requirement prescribed is merely procedural in nature. It is submitted that the Appellant has complied with the relevant provisions by furnishing the Return of Income and the Audit Report on 07.11.2022 i.e. within the extend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - being amount accumulated/set aside u/s 11(2) of the Act on the ground that the assessee had not e-filed form No. 10B being audit report u/s 12A(1)(b) of the Act within the due date as specified. The extended due date of e-filing of Form No. 10B being audit report u/s 12A(1)(b) of the Act for the assessment year 2022-23 was 07.10.2022 and the assessee had e-filed Form No. 10B issued by the Chartered Accountant as on 07.11.2022, which is delayed by 31 days. 3. On further appeal, the Ld. CIT(A) has mainly upheld the disallowance for the reason that neither the Assessing Officer not the Ld. CIT(A) was having any authority to condone the delay in filing the Form No. 10B. The Ld. CIT(A) has referred that under the Circular No. 03/2020 dated 03. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in filing such form on the Income-tax Portal. Therefore, the issue is merely for the condonation of the delay of the 31 days. We find that the Ld. CIT(A) has referred to Circular No. 16/2022 dated 19.07.2022 issued by the CBDT, where in the CBDT invoking powers u/s 119(2)(b) of the Act delegated the power for condoning the delay to the Pr. Chief Commissioner/Chief Commissioner or Commissioner of Income-tax as the case may be. The relevant circular is reproduced as under: 7.2 In this context, the Central Board of Direct Taxes (CBDT) issued Circular 3/20 0 dated 03-01-2020 and Circular No. 16/2022 dated 19th July, 2022. The relevant excerpts from Circular No. 16/2022 dated 19th July, 2022 are as follows: Condonation of delay under Section 119 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... three months of receipt of the application. 6.2 The assessee stated that application for condonation of delay in filing Form No. 10B for the year under consideration was filed before the Commissioner of Income-tax (Exemption), Mumbai on 16.03.2023 and said application is still pending for disposal till date. However, we find that under the CBDT circular (supra) the concerned Commissioner of Income-tax is preferably required to dispose off the application within the three month of receipt of this application. Before us, the Ld. counsel for the assessee expressed ignorance regarding disposal of the application of the assessee. In the facts and circumstances of the case, we feel it appropriate to set aside the order of lower authorities and r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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