MATRUBHUMI EDUCATION TRUST,CHIKHLI NA vs. ARIVS.ITO, EXEMPTION WARD, SURAT

We have heard rival submission of the parties and perused the relevant material on record. In the instant case, the Assessing Officer has denied exemption u/s 11 of the Income-tax Act, 1961 (in short ‘the Act’) provided to the Trust, due to delay in filing of audit report in Form No. 10B. Under the provisions of the Act, the assessee was required to file Form No. 10B at least one month before the due date prescribed for filing return of income before the due date prescribed for filing return of income before the due date prescribed for filing return of income u/s 139(1) of the Act. The due u/s 139(1) of the Act. The due date for filing the return of income for filing the return of income for the concerned year was e for the concerned year was extended up to 07.11.2022 and xtended up to 07.11.2022 and therefore, the audit report should have been filed by the assessee therefore, the audit report should have been filed by the assessee therefore, the audit report should have been filed by the assessee on or before 07.10.2022 on or before 07.10.2022 as per the provisions of section 12A of as per the provisions of section 12A of the Act. However, the appellant has filed the report on the Act. However, the appellant has filed the report on the Act. However, the appellant has filed the report on 20.10.2022 which has resulted into withd which has resulted into withdrawal of the benefit of rawal of the benefit of exemption u/s 11 of the Act. We find that the Ld. CIT(A) has exemption u/s 11 of the Act. We find that the Ld. CIT(A) has exemption u/s 11 of the Act. We find that the Ld. CIT(A) has noted that the Assessing Officer was not empowered to condone noted that the Assessing Officer was not empowered to condone noted that the Assessing Officer was not empowered to condone the delay and said power the delay and said power vests with the Jurisdictional with the Jurisdictional Commissioner of Income Commissioner of Income-tax (Exemptions)/ Pr. Commissio (Exemptions)/ Pr. Commissioner of Income Tax (Exemptions) Income Tax (Exemptions). The Ld. Counsel for the assessee . The Ld. Counsel for the assessee submitted that delay in filing the audit report was not intentional submitted that delay in filing the audit report was not intentional submitted that delay in filing the audit report was not intentional and due to the reason and due to the reasons that during the month of September, that during the month of September, 2022 assessee trustee was undergoing for medical treatment 2022 assessee trustee was undergoing for medical treatment 2022 assessee trustee was undergoing for medical treatment hence unable to comply the audit detail in due time. unable to comply the audit detail in due time. unable to comply the audit detail in due time. In view of above facts and circumstances, we restore this appeal back to the above facts and circumstances, we restore this appeal back to the above facts and circumstances, we restore this appeal back to the file of the Ld. CIT(A) with the direction to the assessee to file file of the Ld. CIT(A) with the direction to the assessee to file file of the Ld. CIT(A) with the direction to the assessee to file necessary applicatio necessary application before the Ld. CIT(E) or PCIT(E) n before the Ld. CIT(E) or PCIT(E) for condonation of the delay and once delay in filing ation of the delay and once delay in filing ation of the delay and once delay in filing Form 10B is condoned, the assessee may inform the Ld. CIT(A) for deciding the assessee may inform the Ld. CIT(A) for deciding the assessee may inform the Ld. CIT(A) for deciding the matter on merit. Accordingly, we set aside the order of the Ld. the matter on merit. Accordingly, we set aside the order of the Ld. the matter on merit. Accordingly, we set aside the order of the Ld. CIT(A) and restore the matter back to the file of the Ld. CIT(A). CIT(A) and restore the matter back to the file of the Ld. CIT(A). CIT(A) and restore the matter back to the file of the Ld. CIT(A).