B.M. Biyani ORDER
B.M. Biyani, Member (A)
1. Feeling aggrieved by appeal-order dated 09.01.2023 passed by learned Commissioner of Income-Tax, National Faceless Appeal Centre, Delhi["Ld. CIT(A)"], which in turn arises out of rectification-order dated 01.03.2018 passed by learned CPC, Bangalore["Ld. AO"] u/s 154 of Income-tax Act, 1961 ["the Act"] for Assessment-Year["AY"] 2015-16, the assessee has filed this appeal on various grounds as mentioned in Appeal Memo.
2. Heard the learned Representatives of both sides at length and case-records perused.
3. The exact controversy involved in various grounds of appeal is: Whether or not the assessee was entitled for exemption u/s 11/12 as claimed in the return of income, when the audit-report (Form No. 10B)was filed after filing of return but before processing u/s 143(1)?
4. Apropos to this issue, the precise facts are: The assessee is a charitable/religious trust, engaged in carrying out charitable/religious activities, registered u/s 12A/12AA of the Income-tax Act, 1961 and entitled for exemption u/s 11/12; accordingly it claimed exemption u/s 11/12 in the return of income filed on 31.03.2017. When the AO processed intimation of assessment u/s 143(1) on 03.01.2018, he did not allow exemption u/s 11/12 for the reason that the audit report (Form No. 10B) was not filed by assessee with return of income. Subsequently, the assessee filed application dated 23.01.2018 u/s 154 requesting the AO to rectify the intimation of assessment and allow exemption as claimed in return of income. But the AO rejected assessee's request vide order dated 01.03.2018; thus the exemption is again denied. Getting no success at the level of AO, the assessee went in first-appeal to CIT(A). But even at that stage, the assessee did not get any relief. Now, the assessee has come in this appeal before us.
5. Ld. AR submitted that the assessee is engaged in religious activities; that the registration granted to it by tax authorities u/s 12A/12AA was in force; that the assessee had been granted benefit of section 11/12 in preceding assessment-years as well as subsequent assessment-years. He further submitted that the assessee filed return of income on 31.03.2017 and prior to such filing, the accounts were duly audited on 30.09.2015, a copy of the audited-accounts alongwith audit-report (Form No. 10B) is placed at Page No. 5 to 9in Paper-Book. However, the auditors of assessee failed to e-file/upload the audit-report alongwith the return of income. But subsequently before processing of return by AO u/s 143(1), the assessee arranged to get the audit-report e-filed/uploaded on 02.06.2017. Ld. AR submitted that the CIT(A) has, without appreciating these facts, dismissed the appeal of assessee merely on a technical defect that the ........