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2024 (11) TMI 1250 - AT - Income TaxDenial of deduction u/s 11 - assessee failed to file the return before the due date and secondly audit report in Form-10B was not filed before the due date prescribed in this Act - HELD THAT - We are of this view that the appellant is entitled to deduction and his claim cannot be denied only on this regard that Form-9A has been filed later on, not with the returned income. The appellant has been able to establish his ground of delay that the trustee responsible for handling tax related matters was hospitalized and he had been suffering from severe illness. It is also not in dispute that the copy of discharge certificate and doctor's prescription has been filed by the assessee before CIT(E). Accordingly, we condone the delay and the matter is sent back to the file of CIT (E) to pass order as per law. Accordingly, the appeal is hereby allowed. Appeal filed by the assessee is allowed for statistical purposes
Issues:
Appeal against order under section 250 of the Income Tax Act, 1961 for Assessment Year 2019-20; Disallowance of application of income and taxation of non-corpus donation due to non-filing of Form-9A; Delay in filing Form-9A; Challenge of dismissal of appeal by the appellant; Interpretation of legal provisions regarding filing of audit reports and forms; Consideration of precedents in similar cases. Analysis: Issue 1: Disallowance of application of income and taxation of non-corpus donation The appellant, a registered Trust, filed its return of income for the Assessment Year 2019-20, declaring total income at 'NIL'. However, an intimation order under section 143(1) of the Income Tax Act was received, disallowing the amount of donation under section 11(2)(ii) due to non-filing of Form-9A. The appellant challenged this disallowance, citing inadvertent omission and delay in filing the form. The appellant presented evidence of the trustee's hospitalization due to COVID-19 and subsequent filing of the form. The Tribunal considered the facts, including the charitable activities of the Trust, and referred to relevant case laws to support the appellant's claim. The Tribunal held that the appellant's delay in filing Form-9A was justified due to the trustee's illness and circumstances. The delay was condoned, and the matter was remanded to the lower authority for further proceedings. Issue 2: Interpretation of legal provisions regarding filing of audit reports and forms The Tribunal analyzed various judgments, including decisions by the Gujarat High Court and ITAT Kolkata, regarding the filing of audit reports and forms in relation to trust assessments. The Tribunal emphasized that substantial compliance with filing requirements should be considered, especially when the audit report was filed before the conclusion of assessment proceedings. The Tribunal cited precedents to support the appellant's argument that the delay in filing Form-9A should not result in denial of deductions. The Tribunal highlighted the importance of considering the circumstances and reasons for delays in filing such forms, especially in cases involving charitable trusts. Issue 3: Consideration of precedents in similar cases The Tribunal extensively discussed and applied precedents from various High Courts and ITAT decisions to support the appellant's case. The judgments highlighted the importance of substantial compliance with filing requirements, especially in cases involving charitable trusts. The Tribunal emphasized that the denial of deductions should not be solely based on technical delays in filing forms, especially when the trust is engaged in genuine charitable activities. By considering these precedents, the Tribunal concluded that the appellant was entitled to the deduction and allowed the appeal for statistical purposes. In conclusion, the Tribunal allowed the appeal, considering the circumstances of the case, the reasons for the delay in filing Form-9A, and the precedents supporting the appellant's arguments. The Tribunal emphasized the importance of substantial compliance with filing requirements and the consideration of genuine reasons for delays in such filings, especially in cases involving charitable trusts.
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