The Raipur bench of Income Tax Appellate Tribunal (ITAT) has recently held that the exemption under section 11(2) of Income Tax Act, 1961 shall be allowable only if Form 10B and Return of Income are furnished within the due date specified under Section 139(1) of Income Tax Act.
The aforesaid appeal was filed by assessee Jain Shwetamber Murtipujak Sangh against the orders passed by the Commissioner of Income-Tax (Appeals) [CIT(A)] .
The assessee trust is a religious-cum-charitable trust registered under the Section 12AA(1)(b)(i) of the Income Tax Act.
After claiming exemption under Section 11 of the Income Tax Act. The assessee trust had e-filed its return of income under Section 139(4) of the Income Tax Act. for Assessment Year 2016-17 declaring nil income.
Thereafter, the sessee’s claim for exemption under Section 11(2) of the Income Tax Act was declined, for the reason that the same was to be allowed only if Form 10(sic.10B) alongwith return of income were furnished electronically within the “due date” specified under Section 139(1) of the Income Tax Act.
Aggrieved by the order assesee filed an appeal before the Commissioner of Income Tax(Appeals). In the meantime, the assessee uploaded Form 10B electronically.
While considering the appeal,the Commissioner of Income Tax (Appeals) the assessee trust had filed Form 10B read with Section 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 Section139 of the Income Tax Act.
The Commissioner of Income Tax (Appeals) on the basis of aforesaid observations dismissed the assessee’s appeal.
Thus, the assessee filed a second appeal before the tribunal.
Sunil Kumar Agrawal, counsel for the assessee submitted that assessee trust had though obtained the audit report in Form 10B dated 30.09.2016 but the same due to certain technical glitches could not be filed alongwith its return of income that was filed under Section 139(4) of the Income Tax Act on 28.03.2018.
Piyush Tripathi, counsel for the revenue submitted that, assessee-trust had obtained the audit report under Section 12A(b) of the Income Tax Act in Form 10B before filing of its return of income under Section 139(4) of the Income Tax Act on 28.03.2018, and had further e-filed/uploaded the same subsequent to filing of its return of income, i.e. on 21.06.2019, therefore, the delay involved in filing of Form No.10B was to be condoned as per Para 4(i) of Central Board of Direct Taxes (CBDT) Circular No.10 read with Circular No.28 .
Further, the assessee-trust was obligated to e-file/upload its “audit report” under Section 12A(b) of the Income Tax Act in Form 10B alongwith.
The assesse failed to do so hence assessee did not entailed to get exemption under Section 11 of the Income Tax Act.
After that the tribunal observed that “assessee-trust did not cumulatively satisfy the set of conditions specified in Para 4(i) of the CBDT Circular No.10 and also had not filed any application for condonation of delay under Section 119(2)(b) of the Act as provided in Para 4(ii) of the said circular, therefore, there remains no occasion for condoning the delay involved in filing of Form 10B by the assessee beyond the stipulated time period”.
Thus the single member bench of Ravish Sood, (Judicial Member) upheld the declining of the assessee’s claim for exemption under Section 11 of the Income Tax Act.
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