Madras HC Allows Trust's Petition to Condone 151-Day Delay in Filing Form 10B on Condition of Donation to Blue Cross of India [Read Order]
The Court held that the delay should not obstruct the Trust from claiming legitimate exemptions or deductions otherwise available to it by relying on Supreme Court precedents, including the ruling that procedures are the "handmaids of justice and not mistress of law".
Condones - Delay - taxscan
Condones - Delay - taxscan
The Madras High Court allowed the petition to condone a 151-day delay in filing the income tax Form 10B, subject to the condition that the Trust donates ₹25,000 to the Blue Cross of India within 30 days.
Sivestar Educational Trust (Petitioner) challenged the rejection order dated 28.11.2024 passed by the Commissioner of Income Tax (Exemption) under Section 119(2)(b) of the Income Tax Act, 1961. The Trust, registered under Section 12A, was required to file its Audit Report (Form 10B) by the extended due date of 31.10.2018 for the Assessment Year 2018-2019.
The Trust filed the form along with its Return of Income on 31.03.2019, incurring a delay of 151 days. The Trust argued that the delay was due to "extenuating circumstances," including the Gaja Cyclone that affected the region, though the due date for filing was prior to the cyclone's formation.
The Commissioner of Income Tax (Exemption) rejected the Trust's condonation request, observing that the reason cited (Gaja Cyclone) was subsequent to the due date for filing the Audit Report.
The authority held that the Trust failed to submit evidence to prove its school was affected and stated that the reasons were only an "afterthought," indicating a failure to comply with statutory responsibilities.
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The bench of Justice C. Saravanan noted that the delay occurred in the Trust's first year of operation (AY 2018-2019) and that the Petitioner did not gain anything by not filing Form 10B in time.
The Court held that the delay should not obstruct the Trust from claiming legitimate exemptions or deductions otherwise available to it by relying on Supreme Court precedents, including the ruling that procedures are the "handmaids of justice and not mistress of law".
The Court allowed the Writ Petition on the condition that the petitioner donate a sum of ₹25,000/- (Rupees Twenty Five Thousand only) by way of Demand Draft directly to the Chairman / Honorary Secretary, Blue Cross of India (BCI), Chennai, within a period of 30 days from the date of the order (28.10.2025).
The Court directed that upon compliance with this stipulation, the impugned rejection order shall be deemed quashed, and the Assessing Officer was directed to complete the assessment in accordance with the law. The writ petition of the petitioner was allowed.
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