Delay in Filing Form 10B can be Condoned only when it was filed Before “Due Date” of Filing of Return of Income u/s.139: ITAT [Read Order]

The Raipur bench of the Income Tax Appellate Tribunal (ITAT) has held that delay in filing Form 10B can be condoned only when it was filed before the “due date” of filing of return of income under section 139 of the Income Tax Act, 1961

Jain Shwetamber Murtipujak Sangh, the appellant assessee is a religious-cum-charitable trust registered under section 12AA(1)(b)(i) of the Income Tax Act, 1961 with the CIT(Exemption), Bhopal. The registration granted to the assessee trust vide order dated 11.07.2016 is effective from 01.04.2015.

The assessee trust had e-filed its return of income under section 139(4) of the Income Tax Act declaring nil income (after claiming exemption under section 11 of the Act). 

Intimation under Section 143(1)(a) of the Income Tax Act, 1961 dated 29.03.2019 was issued by the DCIT, CPC, Bangalore declining the assessee’s claim for exemption under Section 11(2) of the Income Tax, for the reason that the same was to be allowed only if Form Return of income was furnished electronically within the “due date” specified under Section 139(1) of the Income Tax Act.

The assessee filed an appeal before the CIT(Appeals) and also moved an application for rectification of the mistake under section 154 of the Act and the assessee uploaded Form 10B electronically on 21.06.2019.

On appeal, the CIT(Appeals) observed that the assessee trust had filed Form 10B r.w.r. 12(2) of the Income Tax Rules, 1962 on 21.06.2019 i.e. much after the “due date” for filing of its return of income under section 139 of the Act.

The CIT(Appeals) observed that the delay in filing Form 10B could only be condoned in those cases where Form 10B was filed before the “due date” of filing of return of income under section 139 of the Act.

In contra, the Departmental Representatives (DR) argued that as the assessee-trust was obligated to e-file/upload its “audit report” under section 12A(b) of the Act in Form 10B,  its return of income for the year under consideration, which it had failed to do, therefore, its entitlement for exemption under section 11 of the Act was rightly declined by the DCIT.

A single-member bench comprising Ravish Sood, Judicial Member observed that the assessee-trust does not cumulatively satisfy the set of conditions specified in Para 4(i) of the CBDT Circular No.10 (supra), and also had not filed any application for condonation of delay under section 119(2)(b) of the Income Tax Act as provided in Para 4(ii) of the said circular, therefore, there remains no occasion for condoning the delay involved in the filing of Form 10B by the assessee beyond the stipulated period.

The ITAT upheld the declining of the assessee’s claim for exemption under Section 11 of the Income Tax Act, but at the same time, restored the matter to the file of the A.O with a direction to consider the assessee’s claim for deduction of expenses as debited in the income and expenditure account.

To Read the full text of the Order CLICK HERE

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