Alliance Educational Foundation vs. The Income Tax Officer

Parties Involved

Facts Summary

The case involves an appeal by the Revenue against the order of the Commissioner of Income Tax (Appeals) - National Faceless Appeal Centre (NFAC) Delhi, dated 10.08.2023, regarding the assessment year 2018-2019. The appellant, Alliance Educational Foundation, did not appear for the hearing, leading to the case being proceeded ex-parte. The appellant claimed exemption under section 11 of the Income Tax Act, 1961, but the Assessing Officer (AO) denied the exemption as the auditor's report under Form 108 was not filed within the due date. The appellant argued that the due date for filing the return and the Form 108 was extended to 28-02-2019 due to flood conditions in Kerala, as per a circular from the Central Board of Direct Taxes (CBDT). The Tribunal considered the case law CIT vs. Xavier Kelavani Mandal (P. ) Ltd., which held that compliance with the filing of the audit report is directory rather than mandatory, and thus found no merit in the Revenue's contention.…

Legal Issues

• 1. Whether the exemption under section 11 of the Income Tax Act, 1961, was rightly disallowed due to the late filing of the auditor's report?

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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