Section 11 exemption cannot be denied to trust if Audit Report filed before completion of assessment
Case Law Details
DCIT (Exemptions) Vs Nabajuga Educational And Charitable Trust (ITAT Cuttack)
At the outset, if the return filed on 31.10.2018 was not accompanied by the audit report, then it was incumbent upon the revenue to issue notice u/s.139(9) of the Act to treat the return filed by the assessee as defective. Admittedly, this has not been done. This could be because when intimation was issued the audit report was available on the records. Thus, the delay in filing of the audit report has already been condoned by the revenue and it no more lies in the mouth of the revenue to state that the assessee should be denied the benefit of Section 11 of the Act because the audit report has been filed delayed by one day. This being so, as it is noticed that the assessee has filed its audit report before the completion of the assessment, we are of the view that the finding of the ld. CIT(A) in deleting the disallowance and directing the AO to grant the assessee the benefit of Section 11 of the Act is on right footing and does not call for any interference.
FULL TEXT OF THE ORDER OF ITAT CUTTACK
The revenue has filed an appeal being ITA No.127/CTK/2012 against the order passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 17.12.2021 for the assessment year 2018-2019, in DIN & Order No.ITBA/NFAC/S/250/2021-22/1037882010(1). The assessee has also filed cross objection to the above appeal of the revenue.
2. On perusal of the appeal record, it is found that the appeal of the revenue is barred by 147 days. In this regard, a petition for condonation of delay has been filed by the revenue stating sufficient reasons for delay in filing the present appeal, to which the ld. AR did not object. In view of the above, we condone the delay of 147 days in filing the present appeal and appeal of the revenue is heard finally.
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