THE CONGREGATION OF BROTHERS OF ST.MICHAEL,COIMBATORE vs. ACIT, EXEMPTIONS,, COIMBATORE

Brief facts of the case are that the assessee is a charitable trust registered u/s 12A of the Act. During the AY 2023-24, the assessee had a gross income of Rs.3,70,50,099/- and had applied Rs.94,16,815/- towards revenue expenditure and Rs.2,76,33,284/- restricting the total application towards charitable activities to Rs.3,70,50,099/-. However, in the intimation u/s 143(1) dated 05.12.2024, the AO, CPC has disallowed capital expenditure of Rs.2,76,33,284/- for the reason that the assessee has not filed Form 10B (Audit Report). On further appeal to CIT(A), the ld. CIT(A) upheld the order of the AO, CPC. Aggrieved, assessee is in appeal before us.

Before us, ld. AR submitted that the Form 10B has been filed on 12.10.2023 within the due date of 31.10.2023. He also referred the copy of the Form 10B.

Per Contra, the ld. DR, Ms. Anitha, Addl. CIT submitted that in the light of the submissions of the ld.AR, the matter may be verified by the AO.

We have gone through the orders of the lower authorities and submission addressed by the parties. We have also perused the copy of the Form 10B filed on 12.10.2023 vide acknowledgment Number:403951980121023. However, we direct the AO to verify the Page - 2 - of 3 contentions of the assessee that the Form 10B has been filed on 12.10.2023 vide acknowledgment Number:403951980121023. If the contentiona of the assessee is found true then AO is directed to allow the capital expenditure of Rs.2,76,33,284/- as an application of funds towards charitable activities.