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TMI Blog2021 (3) TMI 1088X X X X Extracts X X X X X X X X Extracts X X X X ..... in any given case from condoning the delay in filing Form No.10B beyond 365 days despite passing a general order. That being the position and having regard to the mandate of section 119(2)(b), we feel that even at this stage, petitioner may approach CBDT under the aforesaid provision seeking a special order to the Commissioner of Income Tax (Exemptions), Mumbai to condone the delay in filing Form No.10B for the assessment year 2018-19 which is beyond 365 days and thereafter to deal with the said claim on merit and in accordance with law. Order :- Petitioner shall file an application before the CBDT under section 119(2)(b) of the Act to authorize the Commissioner of Income Tax (Exemptions), Mumbai to condone the delay in filing Form No.10B for the assessment year 2018-19 and to deal with the same on merit in accordance with law; If such application is filed by the petitioner within a period of three weeks from today, CBDT shall pass an appropriate order in terms of direction No.1 above within a period of four weeks from the date of receipt of such application with due intimation to the petitioner. X X X X Extracts X X X X X X X X Extracts X X X X ..... Respondent No.2 i.e., Central Board of Direct Taxes issued Circular No.2 of 2020 dated 03.01.2020 empowering the Commissioner of Income Tax (Exemptions) to condone the delay in filing Form No.10B for a period upto 365 days from the assessment year 2018-19 onwards. 10. Commissioner of Income Tax (Exemptions), Mumbai requested the petitioner vide letter dated 04.02.2020 to furnish documents in connection with the application for condonation of delay for the assessment year 2018-19 which was complied with by the petitioner. 11. However, vide the impugned order dated 19.02.2020, Commissioner of Income Tax (Exemptions), Mumbai rejected the application of the petitioner for condonation of delay for the assessment year 2018-19. The said order was passed following Circular No.2 / 2020 of the Central Board of Direct Taxes (for short 'CBDT'). 12. Petitioner has stated that it had filed an application for condonation of delay in filing Form No.10B for the assessment year 2017-18 which was allowed by the Commissioner of Income Tax (Exemptions) by condoning the delay. 13. Aggrieved, the related writ petition has been filed for quashing of order dated 19.02.2020 and for a direction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ditions for applicability of sections 11 and 12. As per Rule 17B the report of audit of accounts of a trust or institution which is required to be furnished electronically under clause (b) of section 12A shall be in Form No.10B. In other words, where the total income of the trust or institute as computed under the Act without giving effect to the provisions of section 11 and section 12 exceeds the maximum amount which is not chargeable to income tax in any previous year, the accounts of the trust or institution for that year should be audited by an accountant as defined in the explanation below sub-section (2) of section 288 which should then be furnished along with the return of income for the relevant assessment year. 18. Before we advert to the impugned order, it would be apposite to deal with section 119 of the Act which confers power upon the CBDT to issue instructions and directions to other income tax authorities as it may deem fit for proper administration of the Act which are required to be observed and followed by the income tax authorities. Section 119(2)(b) is relevant and the same is extracted hereunder:- "Section 119(2) (a) … (b) the Board may, if it con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessees were prevented by reasonable cause from filing such application within the stipulated time. By the Circular No.2 / 2020, the following portions have been added:- "5. In addition to the above, it has also been decided by the CBDT that where there is delay of upto 365 days in filing Form No.10B for Assessment Year 2018-19 or for any subsequent Assessment years, the Commissioner of Income-tax are hereby authorized to admit such belated applications of condonation of delay u/s. 119(2) of the IT Act and decide on merits. 6. The Commissioners of Income-tax shall, while entertaining such belated applications in filing Form No.10B, satisfy themselves that the assessee was prevented by reasonable cause from filing such application within the stipulated time." 21. As per the above it has been decided by the CBDT that when there is delay of upto 365 days in filing Form No.10B for assessment year 2018-19 or for any subsequent assessment years, Commissioners of Income Tax have been authorized to admit such belated applications for condonation of delay under section 119(2) of the Act and to decide the same on merit. It has further been clarified that while entertaining such belated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 06.11.2019. The details and the documentary evidences filed by assessee have been examined during the course of proceedings. It is seen that the Form No.10B is filed electronically after lapse of more more than 365 days of the due date of the filing of return of income i.e. 31.10.2018. The case of the assessee is not covered under para 5 of the CBDT Circular dated 03.01.2020 wherein the CBDT has delegated the power to the Commissioner of Income-tax to admit belated applications of condonation of delay u/s. 119(2) of the Act only upto 365 days in filing of Form No.10B and decide on merits. 4. In view of the above, the application for condonation of delay for A.Y.2018-19 is hereby rejected." 23. Commissioner noted that petitioner had filed return of income on 15.08.2018 and revised return of income on 30.03.2019. Form No.10B was filed on 06.11.2019. Form No.10B was required to be filed within the due date of filing of return, in this case 31.10.2018. There was thus delay of more than 365 days in filing Form No.10B. Referring to the Circular dated 03.01.2020, Commissioner noted that CBDT has delegated the power to the Commissioner to admit belated applications in filing Form No.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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