UNITED WORLD AGAINST DIABETES,PUNE vs. EXEMPTION WARD 1(2), PUNE, PUNE

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ITA 618/PUN/2024Status: DisposedITAT Pune06 May 2024AY 2019-2020Bench: SHRI INTURI RAMA RAO (Accountant Member), SHRI VINAY BHAMORE (Judicial Member)4 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the CPC should have considered the audit report filed before the extended due date. Therefore, the intimation passed under Section 143(1) denying exemption was set aside.

What were the facts?

The assessee, a charitable trust, filed its return of income claiming exemption under Section 11. The audit report in Form 10B was filed after the return but before the extended due date for filing the audit report. The CPC denied exemption under Section 11 due to the delayed filing of the audit report.

What were the issues?

Whether exemption under Section 11 can be denied solely on the ground that the audit report in Form 10B was not filed along with the return of income, when it was filed before the extended due date.

Which sections of the Income-tax Act were involved?

Section 11,Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE

Before: SHRI INTURI RAMA RAO & SHRI VINAY BHAMORE

For Appellant: Smt. Deepa Khare
For Respondent: Shri Manoj Tripathi
Hearing: 02.05.2024Pronounced: 06.05.2024

This is an appeal filed by the assessee directed against the order of Addl/JCIT(A), Kochi dated 29.02.2024 for the assessment year 2019-20.

2.

Briefly, the facts of the case are that the appellant is a Public Charitable Trust registered under Bombay Public Trusts Act, 1950. The appellant Trust had registration u/s.12A of the Income-tax Act, 1961 (hereinafter referred to as ‘The Act’). It is formed with the object of providing support and medicines to the underprivileged people suffering from Diabetes. The appellant trust filed the return of income for the A.Y. 2019-20 on 27.08.2019 declaring Nil income claiming exemption u/s.11 of the Act. The Audit Report in Form 10B was also furnished on 30-09-2019. The said return of income was processed by ADIT, CPC, Bengaluru vide intimation u/s.143(1) dt. 11.05.2020 denying exemption u/s.11 on the ground that Audit Report in Form 10B was not filed within the due date.

3.

Being aggrieved, an appeal was filed before the CIT(A) who vide impugned order confirmed the action of the CPC by holding that CIT(Exemption) had rejected the appellant application dated 12.09.2023 for condonation of delay in filing the Audit Report in Form 10B.

4.

Being aggrieved, the appellant is in appeal before us in the present appeal.

5.

The ld. Counsel submits that though the Audit Report in Form 10B was filed within the due date prescribed but after the filing of return of income. Therefore, there was no delay in filing Audit Report in Form 10B and the CIT(Exemption) was not justified in denying exemption u/s.11 of the Act.

6.

On the other hand, the ld. Sr. DR supported the orders of the lower authorities.

7.

Heard the rival submissions and perused the material on record.

The solitary issue in the present appeal is whether the CPC was justified in denying exemption claimed u/s.11 of the Act solely on the ground that the Audit Report in Form 10B was not filed along with the return of income. In the present case, Audit Report in Form 10B was not filed along with the return of income. Admittedly, the Audit Report in Form 10B was filed on 30.09.2019, well before the extended due date of filing Form 10B for the relevant year, i.e., 31.10.2019. Audit Report in Form 10B was very much available with the CPC at the time of processing the return of income. In the circumstances, we are of the considered opinion that the CPC should have taken into consideration the Form 10B as available with it as on the date of processing the return and accordingly should have processed the return of income. Therefore, we set-aside the intimation passed u/s.143(1) and direct the CPC/AO to amend the intimation by taking into consideration the Form 10B as available with it at the time of processing the return.

8.

In the result, the appeal filed by the assessee stands allowed. Order pronounced on this 06th day of May, 2024.

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