SUD Education Trust Vs DCIT (CPC) (ITAT Surat)
The ITAT Surat considered an appeal filed by a charitable and religious trust registered under Section 12AB of the Income-tax Act against the order of the Commissioner of Income-tax (Appeals), arising from an intimation issued under Section 143(1) for Assessment Year 2022-23. The dispute concerned whether exemption under Sections 11 and 12 could be denied solely on the ground that the audit report in Form No. 10B was filed after the prescribed due date but before processing of the return under Section 143(1).
The assessee filed its return of income under Section 139(1) within the extended due date, claiming exemption under Sections 11 and 12. Although the audit report in Form No. 10B was filed after the prescribed due date for filing the audit report, it was submitted before the CPC processed the return under Section 143(1). The CPC denied the exemption under Sections 11 and 12 on account of the delayed filing of Form No. 10B and assessed the income accordingly. The Commissioner (Appeals) affirmed the action.
Before the Tribunal, the assessee contended that the delay in filing Form No. 10B was only a procedural lapse. It submitted that it was otherwise fully eligible for exemption under Sections 11 and 12, was carrying out genuine charitable and religious activities, and had complied with all substantive statutory conditions. It relied upon several decisions of the High Courts and various benches of the Tribunal holding that delayed filing of the audit report is a procedural and directory requirement and should not result in denial of exemption.
