SRI GOPIRAM SARAF SEVA TRUST, CHENNAI V. DY. /ASST. COMMISSIONER OF INCOME TAX, CPC, BENGALORE, BANGALURU.

ITA 239/CHNY/2023

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The case involves the Sri Gopiram Saraf Seva Trust, an educational trust registered under section 12AA of the Income Tax Act, 1961, which appealed against the order of the Commissioner of Income Tax (Appeals) confirming the intimation passed by the Centralized Processing Centre, Bengaluru. The intimation denied the claim of deduction under section 11 of the Act due to the late filing of the audit report in Form No.10B. The Trust argued that the delay was caused by a technical glitch in the income tax portal, occurring just two days after the timely filing of the return of income. The Tribunal referenced a similar case and decided in favor of the Trust, allowing the exemption claim but requiring verification of the audit report by the Assessing Officer.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127433 (ITAT-CHENNAI)
• Duration Of Justice: 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 08-03-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 22-02-2023
• Other Referred Cases: Savitri Phule Dattak Palak Sudhari Yojanna Nidhi Brihanmumbai Vs. CPC., Bangalore
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 11; 10B; 143(1)

Judgement Text

आयकर अपील य अ धकरण, ‘ए’/ SMC यायपीठ, चे नई IN THE INCOME TAX APPELLATE TRIBUNAL , ‘A’ /SMC BENCH, CHENNAI ी महावीर संह, उपा य के सम BEFORE SHRI MAHAVIR SINGH, VICE-PRESIDENT आयकरअपीलसं./I. T. A. No. 2 3 9/ Chn y/ 2 0 2 3 ( नधा रणवष / A s se s s m e nt Yea r : 2 01 7- 18 ) Sri Gopiram Saraf Seva Trust, 80, (Old No.141) Greams Road, Thousand Lights,Chennai-600 006. V s The DCIT/ACIT, CPC , Bengaluru. P AN: A A CTS 5 2 7 8 E (अपीलाथ /Appellant) ( यथ /Respondent) अपीलाथ क ओरसे/ Appellant by : Mr. J.Saravanan, Advocate & Mr.Anandd Babunath, C.A यथ क ओरसे/Respondent by : Mr. S.Chandrasekaran, JCIT स ु नवाईक तार ख/D a t e o f h e a r i n g : 09.03.2023 घोषणाक तार ख /D a t e o f P r o n o u n c e m e n t : 09.03.2023 आदेश / O R D E R This appeal filed by the assessee is arising out of order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi vide appeal No. ITBA/NFAC/S/250/2022-23 / 1049051022(1) dated 24.01.2023. The assessment was completed by the DCIT/ACIT., Centralized Processing Centre, Bengaluru for the relevant assessment year 2017-18 vide intimation u/s.143(1) of the Income Tax Act, 1961 (hereinafter “the Act”) vide order dated 09.03.2019. 2. The only issue in this appeal of the assessee is against order of the CIT(A) confirming intimation passed by the 2 ITA No. 239/Chny/2023 Centralized Processing Centre, Bengaluru u/s.143(1) of the Act denying claim of deduction u/s.11of the Act, as the assessee failed to file audit report in Form No.10B on or before due date of filing of return u/s.139(1) of the Act. 3. I have heard rival contentions and gone through facts and circumstances of the case. The assessee trust is an educational trust registered u/s.12AA of the Act. The Assessing Officer, during the course of assessment proceedings noticed that the assessee failed to file audit report in Form No.10B for relevant assessment year 2017-18 as on due date of filing of return of income u/s.139(1) of the Act and hence, the assessee is not eligible for claim of exemption u/s.11 of the Act on the income of Rs.25,15,505/-. Aggrieved, the assessee preferred an appeal before the CIT(A). 4. The CIT(A) also confirmed action of the Assessing Officer by observing that the assessee failed to file audit report in Form No.10B in time. Aggrieved, now the assessee is in appeal before the Tribunal. 5. I noted from the facts of the case that the assessee filed audit report in Form No.10B for relevant assessment year 2017- 3 ITA No. 239/Chny/2023 18 on 17.10.2017, but before the due date of filing for return vide e-filing acknowledgement No.246794991171017 i.e., two days after filing of return of income on 14.10.2017 due to technical glitch in the income-tax portal. It means that the assessee failed to file audit report in Form No.10B along with return of on 14.10.2017 and actually, it was filed only on 17.10.2017, but before due of filing of return of income u/s.139(1) of the Act. The delay in filing audit report in Form No.10B i.e., not filed along with return of income is due to technical glitch in the income tax portal. It is seen that these are initial years for filing of audit report in portal through e-filing and in similar circumstances, the co-ordinate Bench of the ITAT., Mumbai in ITA No.1214/M/2022 dated 29.09.2022 in the case of Savitri Phule Dattak Palak Sudhari Yojanna Nidhi Brihanmumbai Vs. CPC., Bangalore has considered this issue vide para 9 &10 as under:- "9. Moreover, the proviso to section 143(1)(a) of the Act specifically provides that no adjustment shall he made unless (as specified in clause (a) to section 143(1) of the Act) intimation is given to the assessee trust of such adjustment either in writing or in electronic mode and in case response is not received within 30 days the adjustment can be made. So in this case no notice whatsoever has been given to the assessee. 10. In view of what has been discussed above, I am of the 4 ITA No. 239/Chny/2023 considered view that the order passed by the Ld. CIT(A) is not sustainable in the eyes of law, hence set aside. The AO is directed to grant the deduction claimed by the assessee trust under section 11 of the Act, by considering audit report in form 10B after due verification. Resultantly, appeal filed by the assessee is allowed." 6. From the above, it is clear that the assessee has filed audit report on 17.10.2017 which can be verified by the Assessing Officer. Hence, on principle, I allow claim of exemption, but subject to verification by the Assessing Officer . The Assessing Officer will verify audit report and allow claim of the assessee. In term of above, the appeal of the assessee is allowed. 7. In the result, appeal of the assessee is allowed. Order pronounced in the open court on 9 th March, 2023 Sd/- (महावीर संह) (Mahavir Singh) उपा य / Vice-President चे$नई/Chennai, %दनांक/Dated 09.03.2023 DS आदेश क त)ल*प अ+े*षत/Copy to: 1. Appellant 2. Respondent 3. आयकर आय ु ,त (अपील)/CIT(A) 4. आयकर आय ु ,त/CIT 5. *वभागीय त न0ध/DR 6. गाड फाईल/GF.