ASSOCIATION OF REPUTED INSTITUTE OF SCHOOL EDUCATION, DURG,DURG vs. ITO, EXEMPTION WARD-2, RAIPUR, RAIPUR

आदेश / ORDER

PER PARTHA SARATHI CHAUDHURY, JM

2. The relevant facts in this case are that the assessee is a charitable institution registered under the C.G. Society Act and u/s.12A of the Income Tax Act, 1961 (for short ‘the Act’). It had filed return of income for A.Y.2018-19 on 27.10.2018 in Form ITR-7 declaring nil income. Audit report in Form 10B was filed on 28.10.2018 i.e. only one day after filing the return but within the extended due date of 31.10.2018 as per CBDT circular dated 08.10.2018. That the CPC while processing u/s.143(1) of the Act denied exemption u/ss.11 & 12 of the Act only on the ground that the audit report in Form 10B had not been filed a/w. return of income and raised a demand of Rs.1,40,336/-.

report a/w. the return of income. In the present case, the return of income for A.Y.2018-19 was filed on 27.10.2018 in ITR-7 declaring nil income. The audit report in Form 10B was filed just on the next date i.e. on 28.10.2018 when already the CBDT vide its circular dated 08.10.2018 had extended due date upto 31.10.2018. This means in the present case, the audit report has been filed by the assessee within the time framed as prescribed by the Board and in that manner, there is no discrepancy at all. If the due date would not have been extended upto 31.10.2018 and if the audit report as had been filed in this case on 28.10.2018, in such scenario, requirement of Section 12A of the Act could be said to have not been fulfilled by the assessee. But this is a case, where within the extended due date itself, the audit report has been filed by the assessee, therefore, it cannot be said that there is any non-compliance of the provisions on the part of the assessee. That on similar facts and circumstances, ITAT, Division Bench, Raipur in the case of Jhaiji Shikshan Samiti Vs. DCIT (Exemption), A.Y.2018-19, dated 09.09.2025 relying on the decision in the case of ITO Vs. Takshshila Foundation (2024) 208 ITD 677 and Sirur Shikshan Prasarak Mandal Vs. ACIT (2024) 166 taxmann.com 525 had provided relief to the assessee directing the CPC to provide exemption to the assessee holding that the requirement of Section 12A of the Act has been complied with since the assessee had filed audit report within the 4 Association of Reputed Institute of School Education Vs. ITO, Exemption, Ward-2, Raipur (C.G.) extended due date. That on examination of the aforesaid facts in the present case before me and considering the aforesaid judicial pronouncements on the same parity of reasoning, I hold that there is no wrong committed by the assessee in filing the audit report on 28.10.2018 since the due date had been extended by the CBDT itself upto 31.10.2018, therefore, since audit report had been filed by the assessee within the extended due date, the CPC had erred in not granting exemption u/ss.11 & 12 of the Act to the assessee. Accordingly, I set aside the findings of the Ld. CIT(Appeals)/NFAC and direct the CPC to provide relief to the assessee.