2024 (10) TMI 98 - HC - Income Tax

Denial of exemption u/s 11(1) - Failure to submit Form No. 10 AB due to technical glitches on web portal of the official website of the Income Tax Department - petitioner would submit that instead of directing the authorities to accept the application form of the petitioner, the authorities have directed him to approach before the assessing authority and to file his application for condonation of delay, meaning thereby the authorities are not intended to decide the application of the petitioner on its merits, but they may decide their application on the ground of limitation - HELD THAT - In view of the circular dated 17.07.2022, the purpose would be subserved if the Commissioner of Income Tax is directed to accept the application Form No. 10 AB of the petitioner in physical mode treating the same is filed prior to the last date of submission of the application i.e. 30.06.2024 and to decide it on its own merits, considering the period of delay and reasons for delay, as the same has been explained by the petitioner that due to technical glitches he could not succeed in filing the application form. Therefore, although the Commissioner of Income Tax (Exemption) has not been made a party respondent in the case, yet in the interest of justice, the petitioner is directed to submit his application Form No. 10-AB in physical mode to the Competent Authority/Commissioner of Income Tax (Exemption) Bhopal along with an application as well as necessary documents under the circular dated 17.07.2022 within 03 weeks from today, then the Commissioner of Income Tax (Exemption) Bhopal is directed to consider the application of the petitioner treating it as filed before the last date of submission of application form i.e. 30.06.2024, and decide the application on its own merits in accordance with law, and Circular dated 17.07.2022.

Summary

Issues:
1. Failure to submit Form No. 10 AB due to technical glitches
2. Grievance redressal process by the Income Tax Department
3. Authority to admit applications for condonation of delay
4. Relief sought by the petitioner through writ petition

Analysis:
1. The petitioner, a registered society under the Society Registration Act, 1973, faced technical issues while submitting Form No. 10 AB online to the Income Tax Department by the deadline of 30.06.2024. Despite repeated attempts, the form could not be submitted, leading to the filing of a writ petition seeking relief to reset the portal for submission. The department's resolution directed the petitioner to contact the assessing officer, prompting the petition.

2. Respondent No. 4 failed to file a reply despite multiple opportunities. The respondent argued that the petitioner was negligent in not informing authorities immediately about the technical glitches faced during the submission process. The respondent suggested the petitioner approach the assessing officer for resolution. However, the petitioner believed the authorities should accept the form directly or allow physical submission for consideration on its merits.

3. The respondent highlighted circulars authorizing the Commissioner of Income Tax to admit applications for condonation of delay, emphasizing the need for the petitioner to follow the prescribed procedure for relief. The petitioner's counsel contended that the authorities should reconsider the application directly or through the Commissioner of Income Tax (Exemption) to address the petitioner's grievances effectively.

4. The court, after reviewing the circulars and submissions, directed the petitioner to submit Form No. 10 AB physically to the Commissioner of Income Tax (Exemption) within three weeks, along with necessary documents. The Commissioner was instructed to consider the application as filed before the deadline and decide on its merits in accordance with the law and circulars. The petition was ultimately disposed of with this directive.