COMMISSIONER OF INCOME TAX Vs. HARDEODAS AGARWALLA TRUST

JUDGEMENT

(1.) In this reference under Section 256(1) of the Income-tax Act, 1961, for the assessment year 1982-83, the following question of law has been referred to this court :

(2.) The facts leading to this reference are that the assessee filed a return for the assessment year in question without the auditor's certificate in Form No. 10B on December 16, 1983. The assessee, however, filed the balance-sheet as at March 31, 1982, and the income and expenditure account along with the return. The auditor's certificate was not furnished even at the time of hearing. The accounts of the trust have been audited on February 20, 1985, and the report of such audit in the statutory Form No. 10B had been signed by the chartered accountant on February 20, 1985. The Income-tax Officer completed the assessment denying exemption under Section 11 of the Income-tax Act, on March 5, 1985, on the ground that the certificate in Form No. 10B had not been filed as required by the law.

(3.) The assessee, being aggrieved, preferred an appeal before the Commissioner of Income-tax (Appeals). At the hearing of the appeal before the Commissioner of Income-tax (Appeals), the assessee submitted two copies of the audited accounts and the report of the auditor in Form No. 10B. The Commissioner of Income-tax (Appeals) held that the trust had not fulfilled the conditions laid down in Section 12A(b) and, consequently, its income was not entitled to exemption provided under Sections 11 and 12 for the assessment year under consideration. Against this finding of the Commissioner of Income-tax (Appeals), the assessee took the matter to the Tribunal.