2022 (9) TMI 599 - AT - Income Tax

Grant of approval u/s 10(23C)(vi) - delayed filing of application seeking approval - statutory provision to condone the delay in presenting the application under section 10(23C)(vi) - Commissioner of Income-Tax (Exemption) jurisdiction to condone the delay - as per AO assessee had failed to apply for the approval u/s 10(23C)(vi) within the stipulated time period, therefore, the application so filed before him was not maintainable - HELD THAT - CIT (Exemption), Bhopal was not vested with any power to condone the delay involved in filing of the application by the assessee society u/s 10(23C)(vi), therefore, the same had rightly been rejected by him. We, thus, finding no infirmity in the view taken by the CIT (Exemption), Bhopal who had rightly rejected the assessee s application for approval under Sec. 10(23C)(vi), uphold the same. Considering similar facts which had came up in the case of All Angels Educational Society 2016 (8) TMI 156 - MADRAS HIGH COURT had though rejected the assesses request for condonation of delay involved in filing of its application for approval under Sec. 10(23C)(vi) for A.Y. 2012-13, but accepting its alternative contention that as its application for the said year i.e. A.Y. 2012-13 was pending consideration and the impugned order came to passed only on 13.11.2013, therefore, it could not have filed an application for the subsequent assessment year i.e. A.Y. 2013-14, had therein remanded the matter to the file of the CIT, Exemption with a direction to consider the same as the assessee s application for the succeeding year i.e. A.Y. 2013-14. Thus we herein remand the matter to the file of the Commissioner of Income-Tax (Exemption), Bhopal with a direction to consider the present application filed by the assessee for approval under Sec. 10(23C)(vi) as that filed for the immediate succeeding year i.e. A.Y. 2015-16. We, though we decline the assessee s request for condonation of the delay involved in filing of its application for approval under Sec. 10(23C)(vi) for A.Y. 2014-15, but at the same time remand the matter to the file of the Commissioner of Income-Tax (Exemption), Bhopal with a direction to consider the aforesaid application of the assessee as that filed for the immediately succeeding year i.e. A.Y. 2015-16.

Summary

Issues Involved:
1. Whether the delay in filing the application for approval under Sec. 10(23C)(vi) can be condoned.
2. Whether the application for the Assessment Year (A.Y.) 2014-15 can be considered for the next Assessment Year 2015-16 due to the delay in disposal.

Issue-wise Detailed Analysis:

1. Delay in Filing the Application:
The assessee society, established with the primary object of imparting education, filed an application in Form No. 56D on 06.04.2015 seeking approval under Sec. 10(23C)(vi) of the Income Tax Act, 1961 for A.Y. 2014-15. The Commissioner of Income-Tax (Exemption), Bhopal, rejected the application on the grounds that it was filed beyond the stipulated time period. According to the fourteenth proviso to Sec. 10(23C), the application should have been filed on or before 30.09.2014. The Commissioner, drawing from judicial pronouncements, concluded that the application was not maintainable due to being time-barred.

The Tribunal upheld this view, stating that the Commissioner was not vested with any power to condone the delay in filing the application. This position was supported by the judgment of the Hon'ble High Court of Madras in the case of All Angels Educational Society Vs. Chief CIT, Chennai-III, which held that without statutory provision, the authority cannot condone the delay. Similar views were echoed by the Hon'ble High Courts of Andhra Pradesh and Orissa. Therefore, the Tribunal found no infirmity in the Commissioner's decision to reject the application for A.Y. 2014-15.

2. Consideration of Application for A.Y. 2015-16:
The assessee contended that the delay in disposal of the application for A.Y. 2014-15 prevented them from filing a timely application for A.Y. 2015-16. The Tribunal found merit in this argument. It was noted that the application for A.Y. 2014-15 was pending disposal until 24.02.2016, which precluded the assessee from reapplying for the subsequent year by the deadline of 30.09.2015.

Drawing parallels with the case of All Angels Educational Society, where the Hon'ble High Court of Madras directed the Commissioner to consider the application for the subsequent year due to similar circumstances, the Tribunal remanded the matter to the Commissioner of Income-Tax (Exemption), Bhopal. The Commissioner was directed to consider the application filed for A.Y. 2014-15 as an application for A.Y. 2015-16.

Conclusion:
The Tribunal partly allowed the appeal for statistical purposes. It declined the request for condonation of delay for A.Y. 2014-15 but directed the Commissioner to consider the application as filed for A.Y. 2015-16. This decision was pronounced under rule 34(4) of the Appellate Tribunal Rules, 1963, by placing the details on the notice board.