SHAFFRON EDUCATIONAL TRUST,NEW DELHI vs. ITO(E), WARD 2(1), NEW DELHI

These two appeals are filed by the assessee against the different orders of the Ld.CIT(Appeals)-NFAC, Delhi dated 14.02.2023 for the AY 2018-19 arising out of the orders passed u/s 143(1) and u/s 143(3) of the Act in denying the claim for exemption u/s 11 of the Act.

Ld. Counsel for the assessee, at the outset, submits that the claim for exemption u/s 11 of the Act was denied for the reason that there was a delay in furnishing Form 10B by the assessee. Ld. Counsel for the assessee field a copy of the order passed by the Ld. CIT(A) (Exemption), Delhi u/s 119(2)(b) of the Act dated 21.08.2023 condoning the delay in filing Form 10B and submits that in view of the order passed by the CIT(E), Delhi the Assessing Officer is required to consider the claim for exemption u/s 11 of the Act and, therefore, the matter may be restored back to the file of the AO for denovo assessment of the assessee.

Heard rival submissions, perused the orders of the authorities below.

We observe that exemption u/s 11 of the Act was denied to the assessee as the assessee did not furnish audit report in Form 10B. The assessee filed application before CIT(E), New Delhi praying for condonation for delay in filing Form 10B and the CIT(E), Delhi passed order u/s 119(2)(b) of the Act dated 21.08.2023 condoning the delay in filing Form 10B by the assessee for the AY 2018-19. The relevant order is as under: -

In view of the order passed by the CIT(E), New Delhi condoning the delay in filing Form 10B the assessment of the assessee has to be completed afresh considering Form 10B filed by the assessee belatedly. In the circumstances, these two appeals are restored to the file of the Assessing Officer to complete the assessment taking into consideration Form 10B and complete the assessment afresh in accordance with law after providing adequate opportunity of being heard to the assessee.

In the result, appeals of the assessee are allowed for statistical purpose.