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TMI Blog2025 (2) TMI 762X X X X Extracts X X X X X X X X Extracts X X X X ..... s voluntary donation. Accordingly, in our considered view, treatment of corpus donation as voluntary donation falls outside the scope of adjustments contemplated u/s 143(1) of the Act. Denial of exemption u/s 11&12 - late filing of Form No. 10B - As decided in Shree Swaminarayan Charitable Trust [2024 (10) TMI 1635 - ITAT AHMEDABAD] delay in submission of Form No. 10B is a procedural defect and once the said Form has been filed during the course of hearing, no disallowance is called for on account of late / delayed filing of Form No. 10B. In the instant case, we observe that the assessee had filed Form No. 10B before Ld. JCIT(A) before conclusion of appellate proceedings. Thus, exemption u/s 11&12 of the Act cannot be denied to the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee trust received donation of Rs. 17,96,000/- for building fund and the same was treated as corpus donation, and claimed as exempt from tax since it was specifically ear-marked as corpus donation and the said amount was not offered as income by the assessee. Subsequently, the assessee trust purchased building for the objects of the trust. In the return of income filed by the assessee, the aforesaid amount was disclosed as corpus donation only. However, the CPC, by way of adjustment under Section 143(1) of the Act, treated this amount as income of the assessee and subjected the same to tax in the hands of the assessee. 4. The assessee filed appeal before Ld. CIT(A) and took various contentions. The assessee submitted that CPC acted beyon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled the Audit Report "physically" on 18.10.2022 (Acknowledgement has been attached before us for our perusal). Secondly, the Counsel for the assessee also took an argument that the assessee was not under any obligation to file Form 10B, since the income of the assessee was below the taxable limit. The Counsel for the assessee drew our attention to the Paper Book of the assessee as per which the gross income of the assessee was Rs. 79,000/- only and hence the same was below the minimum limit which was chargeable to tax. Accordingly, it was submitted that clearly the assessee was not under an obligation to file Form 10B, looking into the assessee's facts. The Counsel for the assessee drew our attention to Section 139(4A) of the Act, and subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or grant of exemption under Sections 11 & 12 of the Act, and hence the corpus donation was liable to be taxed as income in the hands of the assessee. In response, the Counsel for the assessee submitted before us that in the return of income, it was specifically submitted that such amount of Rs. 17,96,000/- received by the assessee was a voluntary donation and not a corpus donation. Secondly, since the income of the assessee, as per the Profit & Loss account, was below the taxable limit, the assessee trust was not under an obligation to file return of income and therefore, also not an obligation to file Form 10B as well. Thirdly, delayed filing of Form 10B is a procedural defect and since the assessee trust had filed the same before Ld. JCIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng of form though mandatory in nature but procedural in nature, owing amendment made in Finance Act, 2015. In the present case, however, the ld.counsel for the assessee submitted that the same has been filed subsequently, and therefore, the above decision of the Hon'ble Jurisdictional High Court is squarely applicable. The relevant portion of the judgment of the Hon'ble High Court at para 6.1 is held as under: 6. The moot aspect thus centres around to the requirement of the availability of the audit report when the assessment was undertaken by the Assessing Officer even though the same may not have been filed alongwith (the return of income. Filing of audit report is held to be substantive requirement but not the mode and stage of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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