Electronic Filing Compliance accepted where timely manual filing and audit report exist, CBDT direction permits condonation and deletion of disallowance.

The article addresses acceptance of a belated electronic Form-10 for a registered charitable trust where the return and Form-10 were filed manually on time and Form-10B (audit report) was timely submitted; applying the CBDT circular permitting condonation for relevant assessment years, the analysis treats the subsequent e-filing as effective for compliance with section 11(2), noting consistent accumulation figures across filings; operative effect: the addition disallowing exemption for the accumulated amount is deleted and the appeal allowed.

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Issues: Whether the disallowance of accumulation/set apart of Rs. 1,21,96,713/- under section 11(2) of the Income-tax Act, 1961 on the ground that Form-10 was not filed electronically within due date should be sustained, or whether the belated electronic filing (together with prior manual filing and timely return/Form-10B) and CBDT direction warrant condonation and deletion of the addition.

Analysis: The assessee is a registered charitable trust and admits timely filing of return and Form-10 manually before the jurisdictional Assessing Officer together with the board resolution. The electronic Form-10 was filed belatedly during appellate proceedings. The record shows Form-10B (audit report) was filed within due date. The CBDT issued Circular No. 06/2020 dated 19.02.2020 directing acceptance of belated Form-9A/Form-10 for AYs 2016-17 to 2018-19 where return of income was filed on or before 31st March of the relevant assessment year, permitting condonation of delay. The Tribunal noted that the Assessing Officer and Commissioner (Appeals) have concurrent powers and that the manual timely filing before the Assessing Officer, the subsequent electronic filing, and the CBDT direction together justify treating the Form-10 as effectively filed for the purposes of section 11(2). The factual comparison between amounts in manual and electronic filings and Form-10B showed no dispute on accumulation figures.

Conclusion: The belated electronic filing of Form-10 is to be treated as acceptable and the addition of Rs. 1,21,96,713/- disallowing exemption under section 11(2) is deleted; the assessee's appeal is allowed.

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