Section 11 exemption cannot be denied merely for delay in furnishing of Form 10B

Gangji Shamji Chedda (Princewala) Charitable Trust Vs DCIT (ITAT Mumbai)

It is held that filing of audit report in form 10B during the course of assessment proceedings is sufficient compliance of section 12A(b) which has to be considered. So the exemption otherwise available to the assessee trust under section 11 cannot be denied merely on account of delay in furnishing of audit report in form 10B as required under section 12A(b) of the Act. So in the present case audit report having been filed by the assessee trust well prior to the last date of filing of return is a sufficient compliance of section 12A(b) of the Act.

FULL TEXT OF THE ORDER OF ITAT MUMBAI

The appellant, M/s. Gangji Shamji Chedda (Princewala) Charitable Trust (hereinafter referred to as ‘the assessee’) by filing the present appeal, sought to set aside the impugned order dated 11.05.2022 passed by the National Faceless Appeal Centre(NFAC) [Commissioner of Income Tax (Appeals), Delhi] qua the assessment year 2017-18 on the grounds inter alia that :-

“1. The learned CIT(A) erred in confirming the action of the Central Processing Centre (CPC) of denying the exemption u/s, 11, in the Intimation u/s. 143(1), on the ground that the Audit Report u/s, 10B has not been e-filed before or along with the Return of Income.

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