Late filing of required documents would not disentitle Trust from availing benefit under Section 11 of the Income Tax Act, so was held by the Income Tax Appellate Tribunal (ITAT), Mumbai.
Jayesh Dadia, appearing on behalf of the assessee submitted that the assessee, Savitri Foundation is a Charitable Trust and registered under section 12AA of the Income Tax Act, 1961. In the preceding assessment years and subsequent assessment years, the assessee has been granted benefit of section11 of the Act. The assessee filed its return of income for the impugnedassessment year on 30/10/2018. While filing the return of income inadvertently the assessee failed to upload audit report along with the return of income though the audit report dated 19/10/2018 was readily available with the assessee.
The return was processed under section 143(1) of the Act. While processing the return of income, the assessee’s claim of deduction under section 11 of the Act, was rejected in the absence of audit report. The assessee filed appeal before the CIT(A) against intimation dated 16/12/2019. The assessee also filed copy of the audit report. However, the CIT(A) without appreciating the facts dismissed the appeal of assessee merely on the ground that audit report in the prescribed form was not filed along with the return.
The Authorized Representative of the assessee further submitted that the assessee had uploaded the audit report in Form-10B on 18/04/2020, at the time of filing appeal before the CIT(A). The Authorized Representative of the assessee submitted that if the audit report is accepted, the assessee would be able to claim the benefit of exemption under section 11 of the Act. The assessee has been denied the benefit merely on technical defect in not uploading audit report in Form No.10B along with return of income.
Beena Santosh, representing the Department vehemently defended the impugned order and prayed for dismissing the appeal of assessee. The Departmental Representative submitted that furnishing of audit report along with the return of income is a pre-condition for claiming deduction under section 11 of the Act. Since, the assessee has failed to furnish audit report along with return of income, the condition as laid down under the provision of the Act has not beencomplied with, hence, the Assessing Officer and CIT(A) have rightly rejected assessee’s claim of deduction under section 11 of the Act.
Vikas Aswathy, Judicial Member relied on the judgment inCIT vs. Mumbai Metropolitan Regional Iron & Steel Market Committee, wherein it was held that “Late filing of required documents would not disentitle the assessee from availing benefit of section 11 of the Act.
The Tribunal further observed that “Thus, in the facts of the case and in the light of decision of Hon’ble Bombay High Court, I deem it appropriate to restore the file back to Assessing Officer for denovo assessment after considering the audit report field by the assessee, in accordance with law.”
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