9911796707
TMI Blog2024 (6) TMI 1418X X X X Extracts X X X X X X X X Extracts X X X X ..... ner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [ learned CIT(A) ], for the assessment year 2017 18. 2. The assessee has raised following grounds of appeal: 1. The order passed U/s. 143(3) of the Income Tax Act, 1961 is illegal, invalid and bad in law. 2. On the facts and circumstances the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre erred in confirming addition of Rs.15,00,000/-; therefore order passed is unjustified, unwarranted and excessive. 3. On the facts and circumstances of the case, the learned Commissioner of Income Tax (Appeals), National Faceless Appcal Centre erred in not accepting the contention of assessee and disallowing the claim of the assessee u/s 11(2) of the Income Tax; therefore order passed is unjustified, unwarranted and excessive. 4. On the facts and circumstances the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre erred in not considering the circular of CBDT which clearly states delay should be condoned; therefore without considering the circular order passed is unjustified, unwarranted and excessive. 5. The appellant denies liability of interest U/s. 234A, 234B and 234C o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that the assessee trust has e-filed its return of income on 19.03.2018 and Form No.10 was e-filed on 10.11.2017. Thus, both the return of income as well as Form No.10 filed after due date i.e. 07.11.2017. In this case the conditions as provided by clause (c) of sub-sec. (2) of sec. 11 has not been met/complied with by the assessee trust and therefore, it loses the benefit of accumulations of amount of Rs.15,00,000/- as claimed in the return of income. In connection with the above, vide this office's letter dt. 01.08.2019, the assessee trust was asked to show cause why deduction claimed u/s 11(2) should not be denied in its case. To this, the assessee trust submitted a reply pleading that return of income filed before 31.03.2018 were within the time specified in sub-section 4 of sec. 139 alongwith form 10 10B then that should be considered to have been filed within time. The assessee also cited case laws of Bombay HC Delhi HC. I have gone through the submissions of the assessee carefully. The case laws cited by the assessees are not applicable in this case. Further, the assessee's plea that return of income filed u/s 139(4) of the I.T. Act, 1961 is also rejected. By virtue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the person in receipt of the income is required to furnish along with the return of income for the relevant assessment year the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed. 2. As per Rule 17B of the Income-tax Rules, 1962 (hereafter 'Rules') the audit report of the accounts of such a trust or institution is to be furnished in Form no. 1013. As per Rule 12(2) of the Rules, such audit report is to be furnished electronically. The failure to furnish such report in the prescribed form along with the return of income results in disentitlement of the trust from claiming exemption under sections 11 and 12 of the Act. 3. Representations have been received by the Board/field authorities stating that Form no. 1013 could not be filed along with the return of income for AY 2016-17 and AY 2017-18. It has been requested that the delay in filing of Form no. 108 may be condoned. Previously, vide instruction in F. No. 267/482/77-IT(part) dated 09.02.1978, the CBDT had authorized the ITO to accept a belated audit report after recording reasons in cases where some delay has occurred for re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribed under section 139(1) of the Act, the condonation of delay in filing of Form 9A Form 10 by the Commissioners is not of any help to the assessee, as section 13(9) of the Act, inserted w.c.f. 01.04.2016, stipulates twin conditions of filing of Form 9A/Form 10 and also of filing Return of Income before the due date. 2. Accordingly, in continuation of earlier Circulars issued in this regard, with the view to prevent hardship to the assessee and in exercise of powers conferred under section 119(2)(b) of the Act, the CBDT has decided that where the application for condonation of delay in filing Form 9A and Form 10 has been filed, and the Return of Income has been filed on or before 31st March of the respective assessment years i.e. Assessment Years 2016 - 17 2017-18 and - 19 the Commissioners of Income-tax (Exemptions) are authorised u/s 119(2)(b) of the Act, to admit such belated applications for condonation of delay in filing Return of Income and decide on merit. 3. For all other application for condonation of delay not mentioned above, the power of condonation of delay u/s 119(2)(b) of the Act will continue with the respective authorities as per the extant Rules and Practice. A p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It is true that the power of condonation has been delegated to the Commissioner of Income Tax (Exemp.). We find that there is a delay of 03 days in filing Form no.10. During the hearing before us, the learned Counsel for the assessee argued that for the year under consideration, the assessee filed Form no.10 on 10/11/2017, i.e., before filing of return of income, as the due date of filing of return of income was extended upto 07/11/2017. He submitted that there was a delay of 03 days only in filing of Form no.10, due to some technical reason. The learned Counsel further submitted that in accordance with Clause-2 of Circular no.6/2020 dated 19/02/2020, which is reproduced by the learned CIT(A) in his order at Page 8, the appeal of the assessee is covered by the said Circular no.6/2020 (supra), the relevant portion is reproduced below for reference: 2. . With the view to prevent hardship to the assessee and in exercise of powers conferred under section 119(2)(b) of the Act, the CBDT has decided that where the application for condonation of delay in filing from 9A and Form 10 has been filed, and the return of income has been filed on or before 31st March of the respective assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... serted w.e.f. 01.04.20 16, stipulates twin conditions of filing of Form 9A/Form 10 and also of filing Return of Income before the due date. 2. Accordingly, in continuation of earlier Circulars issued in this regard, with the view to prevent hardship to the assessee and in exercise of powers conferred under section 119(2)(b) of the Act, the CBDT has decided that where the application for condonation of delay in filling Form 9A and Form 10 has been filed, and the Return of Income has been filed on or before 31 S1 March of the respective assessment years i.e. Assessment Years 20 16-17,20 17-18 and 2018-19, the Commissioners of Income-tax (Exemptions) arc authorised u/s 119(2)(b) of the Act, to admit such belated applications for condonation of delay in filing Return of Income and decide on merit. 3. For all other application for condonation of delay not mentioned above, the power of condonation of delay u/s 119(2)(b) of the Act will continue with the respective authorities as per the extant Rules and Practice . 17.2 Earlier also a Circular No. 7/2018 dt. 20/12/2018 was issued by the CBDT which read as under: SECTION 119 OF THE INCOME TAX ACT, 1961- CONDONATION OF DELAY UNDER SECTION 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and in oxercise of the powers conferred under section 119(2)(b) of the Act, the Central Board of Direct Taxes hereby authorizes the Commissioners of Income-tax, to admit belated applications in Form No. 9A and Form No. 10 in respect of AY 2016-17 where such Form No. SA and Form No. 10 are filled after the expiry of the time allowed under the relevant provisions of the Act . The Commissioners will, while entertaining such belated applications in Form No. 94 and Form No. 10, satisfy themselves that the assessee was prevented by reasonable cause from filling of applications in Form No. 9A and Form No. 10 within the stipulated time. Further, in respect of Form No. 10 the Commissioners shall also satisfy themselves that the amount accumulated or set apart has been invested or deposited in any one or mace of the forms or modes specified in sub-section (5) of section 11 of the Act. 17.3 From the aforesaid Circular it would be clear that in the genuine case of belated application in Form No. 10, the delay may be condone. In the present case the assessee furnished the Form No. 10 before completion of the assessment. 17:4 On a similar issue the Hon'ble Apex Court in the case of CIT Vs. N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trust from the net of taxation, the intimation in Form 10 has to be filed with the Assessing Officer before he completes the Assessment. In fact, it is the context of the above finding of the Apex Court, that it observed that Form 10 has to be filed before completion of Assessment Proceedings. In fact, the Delhi High Court in the case of Association of Corporation Apex Societies of Handlooms (supra) has also relled upon and so understood the decisions of the Apex Court in Nagpur Hotel Owners' Association (supra). Therefore, we do not find any merit in the reservations expressed by Mr. Singh, learned Counsel for the Revenue on the applicability of the Supreme Court order in case of Nagpur Hotel Owners' Association (supra) to the present facts. 18. We therefore by considering the totality of the fact as discussed hereinabove and by keeping in view the ratio laid down by the Hon'ble Apex Court and the Hon'ble Bombay High Court in the aforesaid referred to cases, are of the view that the Form No. 10 furnished by the assessee during the course of assessment proceedings before completion of the assessment should have been considered by the A.O. while considering the clai ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
