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Facts
The assessee, a registered charitable trust, filed its return declaring 'nil' income. It claimed exemptions under sections 12A and 11(1)(a). However, the audit report in Form 10B was filed belatedly, which led to the CPC raising a tax demand. The assessee had filed a petition for condonation of delay.
Held
The Tribunal noted that the assessee had filed a petition for condonation of delay and directed the CIT (E) to consider this application liberally. The Tribunal did not decide the appeal itself or condone the delay.
Key Issues
Whether the delay in filing the audit report in Form 10B can be condoned and if the assessee is entitled to exemptions despite the delay.
Sections Cited
143(1), 12A, 139(4A), 11(1)(a), 10AA
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Income Tax Appellate Tribunal, ‘F’ BENCH
आदेश / O R D E R PER AMIT SHUKLA (J.M): The aforesaid appeal has been filed by the assessee against order dated 25/11/2024 passed by Addl./JCIT-1 in relation to the intimation u/s.143(1) for the A.Y.2018-19. 2. The brief facts are that assessee is a registered charitable trust u/s.12A and has filed its return of income u/s. 139(4A) on 18/12/2018 declaring ‘nil’ income. After showing application Jijau Shaikshanik Va Samajik Sanstha, Zadpoli u/s. 11(1)(a) of Rs. 3,86,07,093/-, and also there was unutilized surplus of Rs. 52,28,108/-, for which assessee had claimed exemption u/s.10AA for the year under consideration. However, the audit report in Form 10B was not filed alongwith return of income and was uploaded subsequently on 17/12/2019. The ld. CPC while processing the return of income issued an intimation on 30/03/2021 raising tax demand of Rs.2,21,16,320/- on the ground that assessee did not file audit report alongwith return of income. Although the audit report in Form 10B was uploaded on 17/12/2019 much prior to processing of return in CPC, however, the same was not considered. It has been stated that the trust was under the bonafide belief and presumption that Form No.10B has been uploaded online alongwith return of income, however, later on it came to know that the inadvertently audit report was not uploaded alongwith return by the staff. Ld. JCIT has dismissed the appeal on the ground that failure to file audit report in Form No.10B in time which is a mandatory requirement, the disallowance made by the ld. CPC cannot be interfered with.
Before us ld. Counsel for the assessee submitted that assessee has filed petition for condonation of delay in filing of audit report in Form 10B which is still pending and moreover, the delay in filing of the audit report was unintentional and it was an inadvertent mistake and due to lack of technical staff with the assessee trust. Otherwise it has duly complied with the provision of Section 11(1)(a) by applying funds of more than 85%. Apart from that, Form 10AB audit report has ultimately been Jijau Shaikshanik Va Samajik Sanstha, Zadpoli filed much prior to date of issuance of intimation and in such a case, first appellate authority should have condone the delay and directed the ld. CPC to consider the audit report.
4. Since assessee has filed petition for condonation of delay in filing of From 10B, therefore, we direct the ld. CIT (E) to consider the application by taking a liberal view looking to the facts and circumstances of the case that already assessee has complied with the requirement of filing of audit report and once it is already part of the record and merely because there was some venial breach, the benefit otherwise available to the assessee under the Act should not be denied. Since power of condonation of delay has been given to CIT (E) by the CBDT, therefore, we are not deciding this appeal or condoning the delay in filing of the audit report. Accordingly, the appeal of the assessee is dismissed as infructuous, however, with a direction to the CIT (E) to consider the petition for condonation of delay and condone the delay.
In the result, appeal of the assessee is dismissed. Order pronounced on 23rd May, 2025.