Commissioner Of Income Tax, Bhopal v. Environmental Planning & Coordination Org

Commissioner of Income Tax, Bhopal Vs. Environmental Planning & Coordination Org 07.10.2014. Shri Sanjay Lal for the appellant This is revenue’s appeal under section 260-A of the Income Tax Act calling in question tenability of the order-dated 20.2.2009 passed by the Income Tax Appellate Tribunal in I.T.A. No. 18/Ind/2006. Assessment proceedings for the year 2002-03 was completed against the assessee under section 143(3) and a total income of `4,37,25,520/- was assessed. The assessee is a Society registered by the Government of Madhya Pradesh for promoting environmental studies. During the course of assessment, the Assessing Officer found that Auditors Report in the prescribed form No.10-B was not enclosed alongwith the return. Accordingly, the benefit of exemption was denied, the assessment was completed and assessment order passed. However, when the matter was called in question by the assessee in appeal before the Commissioner and the Appellate Tribunal, the delay in filing the Auditor’s Report was condoned and exercising its power under section 11 of the Income Tax Act, the appellate authorities have concurrently held that mere delay in submission of the Auditor’s Report cannot be a ground for denying the benefit of exemption, when there was no discrepancy in the Auditor’s Report; there was no concealment of income or any error pointed out by the Assessing Officer in the matter of submission of the return by the Organization. Finding the respondents to have bonafide reasons for the delay in filing the Auditor’s Report, the Auditor’s Report has been accepted and certain modifications made to the assessment order. In doing so, we are of the concerned view that the discretion exercised by the appellate authorities and the reasons given for extending the benefit of section 11 of the Income Tax Act, no error has been committed and no substantial question of law in the matter arises for consideration, warranting interference. Accordingly, the appeal stands dismissed. (RAJENDRA MENON) (SANJAY YADAV) J U D G E J U D G E Aks/-