Karnataka Chinmaya Seva Trust Vs ACIT (ITAT Bangalore)
ITAT Bangalore held that once the audit report filed in form 10B to be available with the Assessing Officer before the assessment proceedings take place, the requirement of Law is satisfied. Thus, exemption under section 11 of the Income Tax Act allowed.
Facts- The assessee trust has been granted registration u./s 12A of the Act. The assessee trust has also been granted approval u/s 80G of the Act. During the course of assessment proceedings, on a perusal of record, the AO observed that assessee has filed the return of income belatedly on 18.1.2018 and the audit report in Form 10B has also been filed belatedly on 18.1.2018 i.e. on the same day. AO was of the opinion that claim of exemption u/s 11 of the Act is not made in accordance with provisions of the Act and the provisions of section 12A of the Act cannot be applied to the return of income filed by the assessee and accordingly concluded the assessment by denying the claim of exemption made by the assessee in the return of income and the surplus of the assessee is taxed as per the normal provisions of chapter IV of the Income tax Act.
