Bhagwant Kishore Memorial Educational Society Vs ITO (ITAT Delhi)
ITAT Delhi held that not filing of Audit Report in Form 10B alongwith the return of income is a procedural omission only and cannot be impediment in law in claiming the exemption under section 11 of the Income Tax Act.
Facts- The assessee / appellant is a charitable society registered under Societies Registration Act, 1860. The solitary grievance raised by the assessee is that the Ld. CIT(A) erred in denying exemption u/s 11 of the Act on the reasoning that there was a delay in filing Form 10B i.e. Audit Report.
Conclusion- It is established by law that the requirement of filing Audit Report in Form 10B is procedural in nature and therefore exemption claimed by u/s 11 of the Act may be given in certain circumstances. Not filing of Audit Report alongwith the return of income is a procedural omission only and cannot be impediment in law in claiming the exemption.
In Hari Gyan Pracharak Trust vs. DCIT it is held that the appellant assessee has to be held to be eligible and entitled to exemptions under Section 11(1) and 112) of the Act and the alleged ground of non-filing of audit report alongwith return of income which was at the best procedural omission, could never to an impediment in law in claiming the exemption.
