The Income Tax Appellate Tribunal (ITAT) in Jodhpur held that no addition could be made for the delay in filing Form No. 10 within the due date of the Income Tax Return under Section 139 of the Income Tax Act, 1961, as it has been condoned by the Commissioner of Income Tax (Exemption).
The assessee, Sarla Singhvi Charitable, is a trust registered under Section 12AA and 80G of the Income Tax Act, 1961. During the year, the assessee declared total income as Rs. NIL on 12/09/2019, subject to the provisions of Sections 11 and 12 of the Income Tax Act.
Out of aggregate receipts of Rs. 1,22,51,272/-, Rs. 77,89,989/- has been applied for charitable purposes during the year, and Rs. 26,23,593/- have been set apart for the specified purpose.
There has been a delay in filing Form No. 10, as the form was required to be filed before the due date of filing the ITR under Section 139(1), and as a result, CPC has made an addition of Rs. 26,23,593/- while processing the ITR.
Consequently, a prayer for the condonation of the delay in filing Form 10 was filed before Ld. CIT (Exemption). Upon verification of the itemized details of investments made in the mode given under Section 11(5), the CIT (Exemptions) condoned the delay in filing the Form 10. However, without considering the condonation, the CIT(A) rejected the appeal of the assessee.
Aggrieved by the order, the assessee filed an appeal before the tribunal. Shyam S. Singhvi, Counsel for the assessee, argued that the delay in filing Form No. 10 within the due date of the Income Tax Return under Section 139 of the Income Tax Act, 1961, has been condoned by the Commissioner of Income Tax (Exemption). Therefore, it could not be rejected by the CIT(A).
S.M. Joshi, Counsel for Revenue, supported the decision of lower authorities.
The tribunal observed that there is a delay in filing Form No. 10, but the said delay in filling the form has been condoned by the CIT(E). Thus, in the process of condonation of delay, the matter, the Ld. CIT(E), has already verified evidence and also called for itemized details of investments and passed a detailed order dated 29.05.2020 under Section 119(2)(b) of the Income Tax Act.
After considering the facts submitted and the circumstances, the two-member bench of DR. S. Seethalakshmi (Judicial Member) and Rathod Kamlesh Jayantbhai (Accountant Member) held that no addition could be made for the delay in filing Form No. 10 within the due date of the Income Tax Return under Section 139 of the Income Tax Act, as it has been condoned by the Commissioner of Income Tax (Exemption).
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
