Sou Taradevi Asopa Foundation Vs ITO (ITAT Panaji)
Summary: ITAT Panaji allowed the appeal of Sou Taradevi Asopa Foundation and held that exemption under Section 11 of the Income-tax Act, 1961 could not be denied merely because the prescribed audit report in Form 10B was filed with a delay of 22 days, when the report was already available with CPC before the return was processed under Section 143(1). The assessee, a Section 8 company registered under the Companies Act, 2013 and also registered under Sections 12A and 80G of the Income-tax Act, had claimed Section 11 exemption for AY 2022-23. CPC denied the exemption because Form 10B had not been furnished at least one month before the due date for filing the return under Section 139(1). The assessee’s rectification application under Section 154 also resulted in no change.
The Tribunal noted that the due date for filing the return was 07.11.2022 and consequently the prescribed date for Form 10B was 07.10.2022. The assessee furnished Form 10B on 29.10.2022, resulting in a delay of 22 days. Significantly, the return itself was also furnished on 29.10.2022 within the extended time limit under Section 139(1), while CPC processed it only on 28.03.2023. Thus, the audit report was already on the Department’s record well before processing of the return.
