Chhattisgarh HC: Father Must Provide Maintenance and Marriage Expenses to Unmarried Adult Daughter  ||  Delhi HC Rules That ‘Hermès’ and the 3D Shape of its ‘Birkin’ Bag are Well-Known Trademarks in India  ||  Kerala HC: Arrest is Illegal if Accused isn’t Produced in 24 Hours and Rearrest From Prison is Barred  ||  Supreme Court: Treating Every Sour Relationship as Rape Undermines the Seriousness of the Offence  ||  Supreme Court: Section 7 IBC Application Cannot be Rejected for Curable Defects in Affidavit  ||  NCLT Kochi: Sec 7 Insolvency Cannot be Filed Against Guarantor Without First Enforcing the Guarantee  ||  Patna High Court: Mere Two-And-A-Half-Year Incarceration is Not Sufficient for Bail under UAPA  ||  Bombay HC: Insolvency Cannot be Used to Evade a Family Court’s Maintenance Order  ||  Kerala HC: Forklifts and Factory Cranes Are Motor Vehicles and Must be Registered under MV Act  ||  Guj HC: Edible Crude Palm Kernel Oil Qualifies for Duty Exemption; End-Use Condition not Applicable    

Jeevan Kalyana Sadhan vs. ITO - (Income Tax Appellate Tribunal) (02 Mar 2023)

Audit report can be filed even at the appellate stage

MANU/IF/0031/2023

Direct Taxation

The assessee is a trust, which had filed its return of income for the relevant assessment year year. However, when the return of income was filed, the auditors of the assessee had failed to include the Form 10B being the audit report alongwith return of income. It was the submission that, the due date for filing the audit report was 30.9.2015 and the mistake in filing of the audit report was noticed and same was rectified on 21.11.2019. It was the submission that on appeal, the learned CIT(A) had dismissed the assessee's appeal on the ground that ignorance of law is not an excuse. It was the submission that the assessee is dependent on its Chartered Accountant and Auditors for filing the return. The mistake done by the auditors should not put the assessee on a disadvantage position as long as the assessee has not been found to be perse at fault.

A perusal of the decision of the High Court in the case of CIT vs. Shahzedanand Charity Trust clearly shows that the Hon'ble P&H High Court has categorically held that the audit report under Section 12A(1)(b) of the Income Tax Act, 1961 can be filed even at the appellate stage. Thus, High Court has held that the filing of the audit report alongwith the return as per provisions of section 12A(1)(b) of the Act is not mandatory.

The audit has been done within time in the case of the assessee and it is only the audit report which has not been filed within the time prescribed. This is only a venial breach of the provisions. The assessee should not be denied the benefit of deduction under Section 11 and 12 of the Act on account of the said venial breach in respect of the delay in filing of the audit report. Consequently, the delay in filing of the audit report in Form 10B is condoned and the Assessing Officer is directed to consider the same when computing the income of the assessee. Appeal of the assessee stands allowed.

Tags : AUDIT REPORT   ASSESSMENT   RETURN  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved