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

आयकर अऩीऱीय अधधकरण, कटक न्यायऩीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK (THROUGH VIRTUAL HEARING) BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER आयकर अऩीऱ सं/ITA No.40/CTK/2023 (ननधाारण वषा / Assessment Year : 2020-2021) Sri Dattatreya Sai Ashram Trust, Vs ACIT (Exemptions), Bhubaneswar Plot No.4706/5845, Gajapati Nagar, Sainik School, Bhubaneswar-751005 PAN No. :AAJTS 1630 D (अऩीऱाथी /Appellant) .. (प्रत्यथी / Respondent) ननधााररती की ओर से /Assessee by : Shri S.K.Sarangi, CA राजस्व की ओर से /Revenue by : Shri Saroj Kumar Mahapatra, Pr.CIT-DR सुनवाई की तारीख / Date of Hearing : 20/07/2023 घोषणा की तारीख/Date of Pronouncement : 20/07/2023 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order of the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 29.12.2022, passed in ITBA/NFAC/S/250/2022-23/1048342247(1) for the assessment year 2020-2021. 2. 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

2 ITA No.40/CTK/2023 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. 3. 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

3 ITA No.40/CTK/2023 provided for completion or compliance of the action by extending the time limits. It was the submission that the audit report has been filed within the extended time limit, therefore, the disallowance as made in the intimation u/s.143(1) of the Act is liable to be deleted. 4. In reply, ld. CIT-DR vehemently supported the orders of the ld. AO as well as ld. CIT(A). 5. We have considered the rival submissions. As it is noticed that the time limit for the return for the assessment year 2020-2021 had been extended and the audit reports have been filed within the time prescribed in the extension, the disallowance as made in the intimation u/s.143(1) of the Act is liable to be deleted and we do so. 6. It is also noticed that the audit report has been filed before the due date of filing of the return also. A perusal of the Circular No.6 of 2023, referred to supra, shows that it has been clarified that the statement of accumulation in form 10 and Form 9A 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 and this statement of accumulation in form 10 and form 9A is permitted to be furnished on or before the due date of furnishing of return as provided in sub-section1 of Section 139 of the Act. If the details in form No.10 and Form 9A, the audit report would not be complete. Thus, automatically, the audit report in form 10B would also be permitted to be filed before the due date of furnishing of return as provided under sub-section 1 of Section 139 of the Act. In the present case, as it is noticed that the Form 10B has

4 ITA No.40/CTK/2023 been filed before the due date of filing of the return u/s.139(1) of the Act, therefore, the disallowance of the expenditures as made by the AO in the intimation u/s.143(1) of the Act, stands deleted. 7. In the result, appeal of the assessee is allowed. Order dictated and pronounced in the open court on 20/07/2023. Sd/- Sd/- (GIRISH AGRAWAL) (GEORGE MATHAN) ऱेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER कटक Cuttack; ददनाांक Dated 20/07/2023 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतलऱपऩ अग्रेपषत/Copy of the Order forwarded to : 1. अऩीऱाथी / The Appellant- Sri Dattatreya Sai Ashram Trust, Plot No.4706/5845, Gajapati Nagar, Sainik School, Bhubaneswar-751005 2. प्रत्यथी / The Respondent- ACIT (Exemptions), Bhubaneswar आयकर आयुक्त(अऩीऱ) / The CIT(A), 3. आयकर आयुक्त / CIT 4. ववभागीय प्रतततनधध, आयकर अऩीऱीय अधधकरण, कटक / DR, 5. ITAT, Cuttack गार्ड पाईऱ / Guard file. 6. सत्यावऩत प्रतत //True Copy// आदेशानुसार/ BY ORDER,

(Assistant Registrar) आयकर अऩीऱीय अधधकरण, कटक/ITAT, Cuttack