Belated filing of Form No. 10B and power of CBDT to condone the delay

Belated filing of Form No. 10B and power of CBDT to condone the delay

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Belated filing of Form No. 10B and power of CBDT to condone the delay

 

 

Little Angels Education Society v. Union of India (2021) 434 ITR 423 : 280 Taxman 4 : 127 taxmann.com 473 (Bom.)
Short Overview:
The case was pertaining to Condonation of delay in filing Form No. 10B. It may be notre that the benefit of application of income is not available of the form No. 10B is not files before the due date.
Assessee, a charitable trust, filed its return of income on 25.07.2018 declaring nil income
Form No. 10B was obtained from auditor, however, instead of uploading Form No. 10B in income tax portal, assessee uploaded Form No. 10BB inadvertently.
Accordingly, exemptions under sections 11 and 12 were denied and demand was raised vide order, dated 17.10.2019.
Thereafter, assessee uploaded Form No. 10B on income tax portal on 06.11.2019 and also filed an application for condonation of delay.
However, Commissioner (Exemptions), following Circular No. 2 of 2020 of CBDT, dated 03.01.2020, rejected application of assessee for condonation of delay
As per Circular, dated 03.01.2020, Commissioners are authorized to condone delay in filing of Form No. 10B up to 365 days in filing of Form No. 10B for assessment year 2018-19 and subsequent assessment years
However, since Form No. 10B was filed by assessee after lapse of more more than 365 days of due date of filing of return of income, case of assessee was not covered under CBDT Circular, dated 03.01.2020, hence, Commissioner expressed inability to condone delay and rejected application for condonation of delay.
Fixing a period of 365 days of delay for condonation of delay in filing Form No. 10B for assessment year 2018-19 and onwards could not be said to be arbitrary or irrational, therefore general order passed by CBDT in this regard under section 119(2)(b) could not be faulted.
However, having regard to mandate of section 119(2)(b), even at this stage, assessee may approach CBDT under section 119(2)(b) to authorize Commissioner (Exemptions), to condone delay in filing Form No. 10B for assessment year 2018-19 which was beyond 365 days and thereafter to deal with same on merit in accordance with law.
With above view, the case was Partly in favour of assessee.
Conclusion :
Where Form No. 10B was filed by assessee after lapse of more than 365 days of due date of filing of return of income, application for condonation of delay was to be rejected, however, having regard to mandate of section 119(2)(b), assessee may approach CBDT, seeking a special order to Commissioner (Exemptions), to condone delay in filing Form No. 10B and thereafter to deal with said claim on merits in accordance with law

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