SHRI SAHIB DAYAL JI SULAHKUL SATSANG TRUST,AMBALA vs. ITO, WARD-2, AMBALA

Further, it is noted that the Ld. CIT(A) has decided the matter ex-parte qua the assessee and infact, in one of the ground of appeal, the assessee has submitted that the Ld. CIT(A), NFAC has decided the matter without considering the adjournment application submitted on 08/05/2023. 4. It is further noted that in terms of the impugned order, the assessee’s claim for exemption under section 11 has been denied by CPC, Bangalore in terms of intimation under section 143(1) which has been confirmed by the Ld. CIT(A), NFAC, Delhi.

As per Ld. CIT(A), NFAC Delhi, the assessee has filed the return of income alongwith Form 10B on 22/10/2022 and it was stated that the audit report was filed by the assessee after the due date and hence there was a delay in filing the Form 10B and accordingly, the action of the AO/CPC under section 143(1) was upheld. The Ld. CIT(A), NFAC Delhi has referred to the CBDT Circular No. 19/2022 dt. 30/09/2022 wherein the due date for filing of the Audit Report for A.Y. 2022-23 has been extended upto 07/10/2022. Further, he has referred to the CBDT Circular No. 2/2020 dt. 03/01/2020 where the power of condonation for the delay in filing of Form No. 10B has been delegated to the CIT(Exemption) by the CBDT and in view of the aforesaid reasons, the appeal of the assessee was dismissed.

The Ld. DR was heard who has relied on the order of the lower authorities.

After hearing the Ld. DR and perusing the material available on the record, we find that the matter has been decided ex-parte qua the assessee and therefore it would be relevant that the assessee be heard and be allowed an opportunity to put forward its submission for the delay in filing of Audit Report in Form 10B before any view has taken in this regard.

Further, it is noted that the Ld. CIT(A), NFAC has referred to the CBDT Circular No. 19/2022 dt. 30/09/2022 and at the same time, there is another CBDT Circular No. 20/2022 dt. 26/10/2022 wherein the due date of filing of the return of income has been extended from 31/10/2022 to 07/11/2022. Therefore, the issue for consideration in the present case would be that where the assessee has filed the return of income alongwith Form 10B on 22/10/2022 which is within the extended due date of 07/11/2022, whether the same would be treated as due compliance of the provisions of the Act and the assessee be eligible for exemption under section 11 of the Act or not. In the alternate, the assessee’s application seeking condonation of delay, which has been filed before the ld CIT(A) as part of appeal documentation, needs to be considered by the competent authority as per law.

As per ld CIT(A), the competent authority to consider the condonation of delay is CIT(E). In view of the aforesaid discussions, I deem it appropriate that the whole of the matter be remitted to the file of the Ld. CIT(E) to decide the same on merits as per law after providing reasonable opportunity to the assessee.

In the result, appeal of the Assessee is allowed for statistical purposes.

""यथ"/ The Respondent 3. आयकर आयु"/ CIT 4. िवभागीय "ितिनिध, आयकर अपीलीय आिधकरण, च"डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड" फाईल/ Guard File