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TMI Blog2024 (11) TMI 1250X X X X Extracts X X X X X X X X Extracts X X X X ..... spitalized and he had been suffering from severe illness. It is also not in dispute that the copy of discharge certificate and doctor's prescription has been filed by the assessee before CIT(E). Accordingly, we condone the delay and the matter is sent back to the file of CIT (E) to pass order as per law. Accordingly, the appeal is hereby allowed. Appeal filed by the assessee is allowed for statistical purposes - SRI RAJESH KUMAR, ACCOUNTANT MEMBER AND PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER For the Assessee Represented: S.M. Surana, Adv For the Department Represented: Supriyo Pal, Addl. CIT ORDER Per Pradip Kumar Choubey, Judicial Member: This appeal filed by the assessee pertaining to the Assessment Year (in short AY ) 2019-20 is direc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its that when the intimation order and omission of filing of Form-9A came into the notice, the same has been filed by the assessee on 18.03.2021 and according to him it was simply a bona fide omission on the part of the person, said intimation order was issued in the midst of the COVID restriction period. The ld. Counsel for the assessee further stated that trustee responsible for handling tax related matters of the assessee was hospitalized on 29.08.2020 as he was diagnosed with COVID-19 and was on bed rest following three months as per doctor's advice. The ld. Counsel for the assessee cited several decisions which are as follows: 1. Judgement of the Gujarat High Court in the case of Association of Indian Panelboard Manufacturer vs DCI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 021. The grounds taken by the assessee which has also been before ld. CIT (Exemption) that the trustee responsible for handling tax related matters of the assessee was hospitalized on 29.08.2020 as he was diagnosed with COVID-19 and he had been advised for bed rest. It further appears that the object of the Trust in carrying out the charitable activities are not in dispute. It is simply that the assessee did not file Form-9A in the prescribed limit. It is also not in dispute that the assessee accepted the notice made by it and upon realization of the same, it took action to rectify the mistake. We have gone through the cited decisions and find that Hon'ble Gujarat High Court in the case of Association of Indian Panelboard Manufacturer p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oing over the Circular of CBDT and after discussing several judgments of the hon ITAT has passed the order in favour of the assessee. The operative portion of the aforesaid decision is as thus: 12. Now, the second reason for which lower authorities have denied the deduction u/s 11 of the Act is of filing the belated audit report on form 10B of the Act. Now, clause (b) of section 12A(1) of the Act provides for a condition that if the income of a trust exceeds a maximum amount which is not chargeable to tax in the previous year the account have to be audited and the person in receipt of such income furnishes the audit report before the specified date. In the case of the assessee, Form No.10B was to be filed and the relevant rule is rule 17B o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the completion of the assessment. This Court took the view that the benefit of exemption should not be denied merely on account of delay in furnishing the same and it is permissible for the assessee to produce the audit report at a later stage either before the Income-tax Officer or before the appellate authority by assigning sufficient cause. 14. In the above judgment, Hon'ble Court has held that filing of audit report is directory in nature and its substantial compliance would suffice. The ld. Departmental Representative failed to place before us any other binding precedents of Hon'ble Jurisdictional High Court or the Hon'ble Apex Court. Therefore, considering the ratio laid down in the Hon'ble Gujarat High Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to entertain the audit report while processing the return u/s 143(1)(a) of the Act, but the ld. CIT(A) was well within its power to have entertained the said report and examined the same as could have been done by the A.O. Assessment year: 2018-19 Bangarh Educational Welfare Trust. 16. We, therefore, in the given facts and circumstances and respectfully following the judgment of Hon'ble Gujarat High Court in the case Sarvodaya Charitable Trust vs. ITO(Exemption) (supra) , we are of the considered view that since the case of assessee is for A.Y 2018-19 and CBDT came up with a circular dated 23.04.2019 specially for A.Y 2018-19 providing that return of income to be filed within the time allowed u/s 139 of the Act, the assessee has compl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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