Non-Filing of Audit Report before Due Date Not Grounds for Adjusting Exempted Income: ITAT Directs CPC to Amend Intimation

ITAT ruled that non-filing of audit report before the due date cannot be grounds for adjusting exempted income, directing CPC to amend the intimation. The tribunal clarified that procedural lapses in audit report submission shouldn't lead to substantive tax consequences when the underlying exempt income is otherwise valid. This decision protects taxpayers from technical rejections while maintaining the importance of compliance deadlines, striking a balance between procedural requirements and substantive justice in tax administration.