Case Law Details
Hari Gyan Pracharak Trust Vs DCIT (ITAT Ahmedabad)
Introduction In a recent ruling, the ITAT Ahmedabad addressed a critical aspect of tax regulation concerning audit report filing. The case, Hari Gyan Pracharak Trust Vs DCIT, revolved around the implications of a delay in filing the audit report in Form 10B. ITAT concluded that the non-filing of the audit report along with the return of income is merely a procedural lapse and shouldn’t prevent claiming an exemption.
Analysis The case is an example of the dynamic nature of tax law interpretation and its deep-rooted impact on compliance. The issue before the ITAT was whether the delay in filing the audit report could be condoned. The appellant, Hari Gyan Pracharak Trust, had their initial claim disallowed because the audit report filing was delayed. This case was supported by a precedent set in a prior case by the Gujarat High Court.
The judgement turned around the idea that the filing of the Audit Report is a substantive requirement, but the stage and mode of filing are procedural. As long as the report is made available to the Assessment Officer before the assessment initiation, the requirement is met. This interpretation serves as a reminder to tax practitioners that compliance is not merely about ticking boxes but understanding the intent and purpose of the law.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
Please become a Premium member. If you are already a Premium member, login here to access the full content.
