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TMI Blog2024 (11) TMI 1212X X X X Extracts X X X X X X X X Extracts X X X X ..... ulated time. CIT has been delegated the powers by CBDT to condone the delay. Be that as it may, we note that in this case, assessee Trust has filed return along with Audit Report ( 32 days delay) before the CPC and it had processed the return of the assessee. Therefore, taking into consideration sec.12A(1)(ba) r.w.s.139(4A), we are of the view that the CPC ought not to have denied exemption u/s. 11 of the Act without giving proper opportunity as stipulated by first proviso to sec.143(1) of the Act. Since, there is violation of natural justice and the assessee has complied with stipulation of filing Audit Report which was very well before the CPC, the impugned action of the CPC can t be legally sustained. Therefore, we set aside the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... failure on the part of the assessee to file the Audit Report of the accounts of the Trust (Form 10B) within due time which in this case was 15.02.2021 and the assessee belatedly filed the same within 32 days on 20.03.2021 (refer rectification order u/s. 154 of the CPC). According to the Ld.AR, the assessee Trust which enjoys sec.12 Registration can file the return of income within the time allowed u/s. 139 of the Act and referred to the provisions of Sec.139(4A) r.w.s.12A(1)(ba) of the Act. According to the Ld.AR, as per the said provisions, nothing prevented the assessee from filing the return of income along with Audit Report within the timeline provided by Sec.139(4) of the Act, which means, three months prior to the end of the relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nature. And according to the Ld.AR, the amendments are clarificatory in nature and submitted that neither in sec.12A(1)(ba) nor in the Budget Memorandum to Finance Bill, 2017, there is any mention about time-line under sec.139(1) or within due date u/s. 139(1) has been mentioned. Therefore, according to him, the exemption u/s. 11 and 12 ought to have been allowed to the assessee-Foundation on the Returns filed u/s. 139, i.e., u/s. 139(1) as well as 139(4) of the Act. Further, the memorandum itself states that the amendments are clarificatory in nature which clearly means that there should be no change in the position of law and for such a proposition, he drew our attention to the decision of the Kolkata Tribunal in the case of ITO (Exempti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) as per Rule 17 of Income Tax Rules, 1962 (hereinafter in short the Rules ) and direct admitting such belated application by condoning the delay. Therefore, he wants us to direct the assessee to file application before the Commissioner to condone the delay of 32 days in filing of the Audit Report. 5. Having heard both parties and after perusal of the records, we note that the assessee Trust is a registered Public Charitable Trust and has filed its return of income for AY 2020-21 on 20.03.2021 and had shown income/receipt of Rs. 15,02,000/- and expenditure of Rs. 14,61,735/- with a surplus of Rs. 40,265/-. It is noted that due to Covid-19, CBDT extended due-date for filing of return and resultantly, Audit Report was to be filed by 15.02.202 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. Since, there is violation of natural justice and the assessee has complied with stipulation of filing Audit Report which was very well before the CPC, the impugned action of the CPC can t be legally sustained. Therefore, we set aside the impugned order of the Ld.CIT(A), and direct the assessee to file application for condoning delay in filing of Audit Report as per Circular No.2/2020 dated 03.01.2020, which is noted as under: CIRCULAR NO. 2/2020 [F. NO. 197/55/2018-ITA-I], DATED 3-1- 2020 Under the provision of section 12A of Income-tax Act, 1961 (hereafter 'Act') where the total income of a trust or institution as computed under the Act without giving effect to the provisions of section 11 and section 12 exceeds the max ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the CBDT issued Circular No. 10/2019 circulated through F.No. 197/55/2018-ITA-I in supersession of earlier circular/Instruction issued in this regard, and with a view to expedite the disposal of applications filed by such trust or institution for condoning the delay in filing Form No. 10B and in the exercise of the powers conferred under section 119(2) of the Act, the Central Board of Direct Taxes vide Circular No. 10/2019 dated 23rd May, 2019 and Circular No. 28/2019 dated 27th September, 2019 both issued vide F.No. 197/55/2018-ITA-I has directed that : (i) The delay in filing of Form No. 10B for A.Y. 2016-17 and A.Y. 2017-18, in all such cases where the Audit Report for the previous year has been obtained before the filing of return of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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