INTERNATIONAL ROAD FEDERATION-INDIA CHAPTER,DELHI vs. ITO WARD EXEMPTION-1(2), DELHI

Date of hearing 03.06.2025 Date of pronouncement 03.06.2025 ORDER This assessee’s appeal for assessment year 2023-24, arises against the Commissioner of Income Tax (Appeals)/Addl./JCIT(A)- 1, Mumbai’s DIN and order no. ITBA/APL/S/250/2024- 25/1073439034(1), dated 19.02.2025 involving proceedings under section 143(1) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties. Case file perused.

1. 1. That on the facts and in the circumstances of the case, the impugned order passed by the Learned. Assessing officer and ADDL/JCIT(a)-1, Mumbai is bad in law.

2. That on the facts and in the circumstances of the case, the Learned Assessing Officer erred in assessing income of the Association at Rs. 31,15,100/- and charged tax on the same.

3. That on the facts and in the circumstances of the case, the Learned Assessing Officer erred in not allowing the benefit of Section 11 & 12 of the Income tax Act, 1961 to the assessee.

4. On the facts and circumstances of the case, the learned AO /CPC, Bengaluru and ADDL/JCIT (A)-1, Mumbai have erred both on facts and in law in holding that the Audit Report is not filed Form 10BB and also earred in holding that the Audit Report is to be filed in Form 10BB instead of Form 10B.

5. Without prejudice to the above, both the CPC, Bengaluru and ADDL/JCIT (A)-1, Mumbai have erred on the fact and circumstances of the case that the Audit Report furnished in Form No. 10B is as per the provisions of the Income tax act and should be accepted as compliance of the provisions of the Income tax Act and therefore exemption should be allowed. Both failed to take a note of the fact that the furnishing of an Audit Report is a procedural cum directory requirement.

6. The above Grounds of Appeal are independent and without prejudice to each other.

3. The Revenue’s vehement contention during the course of hearing is that the assessee has been rightly denied section 11 exemption for the sole reason that it ought to have filed its tax audit report prescribed in 10BB than that in 10B uploaded at its behest. As against this, the department could hardly deny the assessee’s pleadings all along since it had applied its income outside India, it is required to file Form 10B tax audit report than that under 10BB of the Income Tax Act, 1961.