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Income Tax Appellate Tribunal, COCHIN BENCH : COCHIN
Before: SHRI SATBEER SINGH GODARA & SHRI AMARJIT SINGH
PER SATBEER SINGH GODARA, J.M. : This Revenue’s appeal, for assessment year 2018- 2019, arise against the CIT(A)-National Faceless Appeal Centre [in short the “NFAC”] Delhi’s Din and Order No. ITBA/NFAC/S/250/2023-24/1055034038(1), dated 10.08.2023, in proceedings u/s.143(3) of the Income Tax Act, 1961 (in short “the Act”).
2 ITA.No.847/COCH./2023 Case called twice. None appears at assessee’s behest. It is accordingly proceeded ex-parte.
Learned DR vehemently argued and drew our attention to the CIT(A)’s impugned lower appellate discussion reading as under :
“5. I have considered the facts of the case and written submissions of the appellant as against the observations/findings of the AO in the assessment order. The contentions/submissions of the appellant are being discussed and decided as under :-
Ground No. 1 to 6 These grounds are covered by my finding given with respect to additional ground. Therefore, these grounds were not adjudicated.
Additional ground of Appeal The AO denied the exemption on the ground that auditor's report under Form 108 was not filed along with the return of income within due date
3 ITA.No.847/COCH./2023 According to AO the last date of filing return of income was 31st October, 2018 and the Form 108 was filed on 14-11-2018.
Therefore, the AO held that Form 10B was filed after the due date.
Before me the assessee submitted that the due date of filing return was extended to 28-02-2019 by CBDT for Kerala State due to flood condition, As the last date of filing Income Tax Return and Tax Audit Reports was extended to 28 February 2019. Form 10B filed on 14-11-2018 shall be deemed to have been filed by 31.10.2018 as per CBDT circular dated 27 February, 2019 (File No. 225/15/2019/ITA.II).
Considering the above the AO is directed to allow deduction claimed by assessee under section 11.
This ground of appeal is allowed.
In the result, for statistical purpose the appeal is treated as allowed.”
4 ITA.No.847/COCH./2023 2.1. The Revenue’s contentions in light of these pleadings therefore is that the impugned sec.11 exemption had been rightly disallowed in assessee’s case once it had failed to file it’s audit report/Form-10B within the due date. We note in this factual backdrop that case law CIT vs. Xavier Kelavani Mandal (P. ) Ltd., [2014] 41 taxmann.com 184 (Guj.), has settled the issue in assessee’s favour and against the department to the effect that compliance to the foregoing filing of such sec.10B audit report is a directory one than a mandatory one in nature. We thus see no merit in Revenue’s instant sole substantive grievance. Rejected accordingly.
This Revenue’s appeal is dismissed in above terms.
Order pronounced in the open Court on 25.09.2024.
Sd/- Sd/-/- [AMARJIT SINGH] [SATBEER SINGH GODARA] ACCOUNTANT MEMBER JUDICIAL MEMBER Cochin, Dated 25th September, 2024 VBP/-
5 ITA.No.847/COCH./2023 Copy to 1. The appellant 2. The respondent 3. The CIT(A) concerned. 4. The CIT concerned 5. The D.R. ITAT, Cochin Bench, Cochin. 6. Guard File. //By Order// //True copy//
Sr. Private Secretary, ITAT, Cochin Bench, Cochin