DAV Montessory School Vs ITO (Exemptions) (ITAT Jaipur)
Jaipur ITAT Holds Late Filing of Form 10B Is Procedural; Directs AO to Grant Exemption Where Audit Report Was Available Before Processing Return
The Jaipur ITAT held that while furnishing an audit report in Form 10B is mandatory, the timing of its filing is a procedural requirement, and exemption cannot be denied merely because the audit report was not filed along with the return, provided it was available with the Assessing Officer before processing the return under section 143(1). Accordingly, the Tribunal restored the matter to the Assessing Officer to consider the audit report and grant consequential relief.
The assessee, a charitable educational institution, was denied exemption under section 10(23C)(vi) as CPC had processed the return without allowing the exemption on the ground that Form 10B had not been filed within the prescribed time. Although one appeal against the original intimation under section 143(1) was dismissed due to an inordinate delay of 1,911 days, the Tribunal entertained the appeal arising from the order under section 154, where the issue had been adjudicated on merits.
The Tribunal found that Form 10B had already been uploaded and was available on the departmental portal before the return was processed under section 143(1), a fact not disputed by the Revenue. Relying on the Gujarat High Court’s decision in Association of Indian Panelboard Manufacturers v. DCIT, it held that filing of the audit report is a procedural requirement and once the report is available before completion of assessment, exemption cannot be denied on technical grounds. The Tribunal therefore set aside the matter to the Assessing Officer with directions to consider the audit report already on record and grant appropriate relief by rectifying the assessment. The appeal arising from the rectification proceedings was allowed for statistical purposes, while the belated appeal against the original intimation was dismissed.
Cases Discussed
FULL TEXT OF THE ORDER OF ITAT JAIPUR
