Filing of itr 7 & form 10b

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Sandeep Sindhwani (Querist)
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05 April 2019 I had filed ITR 7 of a society for AY 2017-18 claiming deduction u/s 11 & 12. Thereafter I filed Form 10B .
However we received notice u/s 143(1)(a) rejecting claim u/s 11 and levied tax on Gross total income stating that Form 10B has not been filed along with or before the return of income as per section 12A(1)(b).
According to me both return & Form 10B has bee filed before the due date. Thus it is only a technical error and also section 12A(1)(b) does not speak of the sequence of filing.
What should I do and what is the remedy

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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06 April 2019 Aakriti, Faridabad vs Dcit, Faridabad case (21-03-2018) the Hon'ble Delhi Tribunal has remanded back the case to the file of CIT(A) by directing the CIT(A) to get all the information from the AO as regards the filing of Audit Report in Form 10B. Interestingly, in this case 10B was filed after passing the order by the CIT(A).

Sandeep Sindhwani

Sandeep Sindhwani (Querist)
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06 April 2019 I thank you for your expert reply. But further I want to know can we file any rectification now . If yes then whether it is to be filed with CPC only or can be filed with jurisdictional AO locally for condoning the delay in filing of Form 10B . Or the appeal filing is the only solution. Please give your expert advice.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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06 April 2019 As I apprehend , this time AOs and CPC both have worked in a harsh manner by denying the exemptions in dubious manner. Many high pitch assessments have been made to show an increased revenue of the department whereas the ground realities are totally adverse.
Though it may be seemed as an ridiculous exercise, still it can be tried upon by re-filing the Audit Report in 10B first and then after filing the XML of the ITR, so that the sequential order can be restored at CPC level and may be accepted the same as a due compliance.
Please maintain the timeline and be prepared for filing an appeal in a case, the above process do not work.

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