The Income Tax Appellate Tribunal ( ITAT ), Pune Bench granted exemption under Section 11 of the Income Tax Act, 1961 on the ground of proper filing of Form 10 manually with Income Tax Return.
The assessee, Ruikar Trust is a charitable trust. The assessee claimed exemption under Section 11 of the Income Tax Act, 1961 in the Income Tax Return. The Central Processing Centre (CPC), Bangalore denied the said exemption for non-filing of Form 10 within time. Having aggrieved, the assessee challenged the same before the Commissioner of Income Tax (Appeals) (CIT(A)).
The Counsel for the assessee submitted that the assessee filed on-line Form 10 on 28-04-2017 as it required to be filed before due date of furnishing Income Tax Return under Section 139(1) of the Income Tax Act, 1961 and further submits that the Commissioner of Income Tax (Appeals) (CIT(A)) confirmed the order of CPC for violating the conditions laid down in Rule 17 of the Income Tax Rules. The Counsel contended that the Rule is applicable for the Assessment Year (A.Y.) 2016-17 but not to the year under consideration i.e A.Y. 2015-16.
A Single Bench consisting of SS Viswanethra Ravi, Judicial Member held that “There is no dispute with regard to availability of Resolution on Form 10 with the assessee manually which is noted by the Commissioner of Income Tax (Appeals) (CIT(A)) in the impugned order. Admittedly, the availability of Form 10 manually with the assessee is before due date of filing of Income Tax Return under Section 139(1) of the Income Tax Act, 1961 as the assessee filed Income Tax Return on the proper date.
“The availability of manual Form 10 with the assessee was not disputed by the Counsel for the Revenue. Therefore, the assessee filed Form 10 manually with the Income Tax Return and it is very much within time. Therefore, the order of Commissioner of Income Tax (Appeals) (CIT(A)) is not justified in confirming the order of CPC in denying the exemption under Section 11 of the Income Tax Act, 1961 for non-filing of Form 10 on on-line and it is set aside” the Tribunal noted.
Pramod Shingte appeared for the assessee and the Revenue was represented by M.G. Jasnani.
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