SRI DATTATREYA SAI ASHRAM TRUST,BHUBANESWAR vs. ACIT EXEMPTION CIRCLE, BHUBANESWAR

It was the submission of the ld. AR of the assessee that the assessee is a charitable trust. It enjoys the benefit of registration u/s.12AA of the Act. The assessee had filed its return of income for the relevant assessment year and the same came to be processed u/s.143(1) of the Act, wherein the entire expenditure claimed by the assessee came to be disallowed and the exemption u/s.11 of the Act was also disallowed. It was the submission of the ld. AR that the reason for the same was that there were three days delay in filing of the audit report in Form 10B of the Audit. It was the submission that for the assessment year 2020-2021, the due date of filing of the return was 15.02.2021 and the due date for filing the audit report in Form 10B was 15.01.2021. It was the submission that the assessee had filed his return of income on 03.02.2021 being before the due date of filing of return but the audit report was filed only on 18.01.2021 being three days after the due date. It was the submission that the CBDT vide its Circular No.6 of 2023, dated 24th May, 2023, in para 15 has categorically held as follows :- 15. It is clarified that the statement of accumulation in Form No. 10 and Form No. 9A is required to be furnished at least two months prior to the due date of furnishing return of income so that it may be taken into account while auditing the books of account. However, the accumulation/deemed application shall not be denied to a trust as long as the statement of accumulation/deemed application is furnished on or before the due date of furnishing the return as provided in sub-section (1) of section 139 of the Act.

It was the submission that the Circular specifically provides that the statement of accumulation/deemed application should be furnished on or before the due date of furnishing the return as provided in sub-section (1) of section 139 of the Act. It was further submitted that the Hon’ble Supreme Court in Suo Motu Petition (Civil) No.3 of 2020 had extended limitation from 15.03.2020 to 14.03.2021. It was the submission that as the period of limitation for filing of the audit report fell within the time prescribed in the Circular issued by the CBDT and also the period of extension of the limitation as provided in the decision of the Hon’ble Supreme Court, referred to supra, the AO may be directed to delete the disallowance as made by him. It was the further submission that the Notification issued by the CBDT dated 30.12.2020 in S.O.4805(E) has