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TMI Blog2025 (2) TMI 541X X X X Extracts X X X X X X X X Extracts X X X X ..... br>Shri Manish Borad, Accountant Member For the Assessee : None For the Revenue : Shri Sanjay Dhivare ORDER PER MANISH BORAD, AM: This appeal filed at the instance of assessee is directed against the order of Ld. Addl./JCIT(A)-2, Gurugram ['Ld. CIT(A)'] dated 28.06.2024 which is arising out of an intimation dated 11.05.2020 for Assessment Year 2019-20 issued by the ADIT, CPC, Bangalore. 2. The assessee has raised the following grounds of appeal :- "1. The learned CIT(A), NFAC erred in law and on facts in confirming the addition of Rs. 23,97,758/- made by the learned AO to the taxable income of the appellant, instead of declared income of Rs. 1,13,780/-. 2. Appellant trust contends that Form 10B has been filed and as such all the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irmed the action of the Assessing Officer/CPC. 5. I have heard Ld. Departmental Representative and perused records placed before me. I observe that the assessee is a charitable trust and it furnished its return of income for Assessment Year 2019-20 on 24.09.2019. The assessee is required to get accounts audited and filed audit report in Form 10B. However, the audit report in Form 10B was uploaded on 30.01.2023 which is delayed. Gross receipts of the assessee trust are Rs. 25,11,539/- and expenditure incurred during the year are Rs. 20,21,027/-. However, the CPC while processing the return on 11.05.2020 denied the benefit of exemption u/s 11 of the Act on account of non-filing of audit report in Form 10B and treated the gross receipts of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oned in the income tax return are the same as appearing in the audit report in Form 10B. It is also observed that the finally audit report in Form 10B uploaded on 30.01.2023 and it contains the description of same Chartered Accountant being Membership No.046221 and it was very much available on the income tax portal during the course of first appellate proceedings and copy of audit report was made available to Ld. CIT(A). Under these given facts and circumstances, I find that there are plethora of decisions favouring the assessee on this issue. I however like to reproduce the findings of this Tribunal in the case of Kokan Kala Shikshan Vikaas Sanstha Vs. DCIT, CPC, Bengaluru vide ITA No.645/PUN/2021 dated 30.12.2022 where dealing with the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not allow the appellant to download the notice / communication and vouch the contents therefore and for the reasons it remained non-complied. In support of aforestated claim, the appellant adduced the copy of screenshot placed at "Annexure-7" which remained uncontroverted by the learned departmental representative [for short "DR"]. It is further argued that, the ultimate compliance of submission of audit report was brought to notice of Ld. FAA, who in-spite having co-terminus power with that of Ld. AO, has rejected to entertain the claim of exemption, which caused injustice to the appellant. Per contra the Ld. DR supported the order passed by both the tax authorities below [for short "TAB"] and contended that when the assessee failed to fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 i.e. prior to filing of ITR for the impugned AY, however the copy thereof remained to be filed alongwith ITR as well in response to communication u/s 143(1)(a) of the Act on account of technical glitches beyond the control of the assessee and the deficiency came to light only upon service of demand u/s 156 of the Act. Thus, the non-compliance with communication u/s 143(1)(a) of the Act due to IT Website technical glitches was unintentional and beyond the control of the appellant is sufficient to form a reasonable cause for non-compliance and since the procedural compliance has been duly made good by fling the audit report on record, we see no reason to deny the exemption in the present facts and circumstance, ergo we set-aside the order o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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