ACIT Vs Nanded Sikhgurudwara Sachkhand Hazur Sahib (ITAT Pune)
ITAT Pune held that denial of exemption under section 10(23C)(v) of the Income Tax Act for belated filing of Form No. 10BB not justified as audit report in Form No. 10BB was submitted before completion of assessment proceedings. Accordingly, appeal of revenue dismissed.
Facts- The assessee is a religious and charitable trust engaged in the work of managing the administration and functioning of Sikh Gurudwara Suchkhand Shri Hazur Sahib, Nanded. During the course of assessment proceedings, the Assessing Officer upon verification of the assessee’s financial statements, Tax Audit Report and other relevant details / information furnished observed that the assessee had claimed exemption u/s 10(23C)(v) of the Act. AO noted that assessee trust was required to file audit report in Form 10BB within due date of time. But the assessee trust had filed return of income as well as Form 10BB after due date of time. AO was of the opinion that the funds are not being properly utilised/supervised as is required by provisions of section 10(23C)(v) under which the trust has placed its claim of exemption. He, therefore, rejected the claim of exemption u/s 10(23C)(v).
CIT(A) deleted the addition and allowed the appeal of the assessee. Being aggrieved, revenue has preferred the present appeal.
