Tax Tribunal Upholds Decision on Late Form Filing, Remands Unreported Income Case for Further Review.

The ITAT upheld the CIT(A)'s decision regarding the delayed filing of Form 10, directing the appellant to seek condonation from the Jurisdictional Commissioner of Income Tax, emphasizing the Central Board of Direct Taxes' power to condone delays under section 119(2)(b). Concerning the addition of Rs.3,58,00,000 as unreported income, the ITAT remanded the case back to the Assessing Officer to verify the nature of the amount and its compliance with Accounting Standard-12 (AS-12) before determining its treatment as income. The appeal was allowed for statistical purposes.

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Issues:
1. Delayed filing of Form 10 under sections 11(2) and 13(9) of the Income Tax Act.
2. Addition of Rs.3,58,00,000 as unreported income by the assessee.

Analysis:

Issue 1: Delayed filing of Form 10
The appeal was filed by the revenue against the order of the CIT(A) regarding the delayed filing of Form 10 required under sections 11(2) and 13(9) of the Income Tax Act. The CIT(A) refrained from dealing with the condonation of delay and directed the appellant to seek condonation from the Jurisdictional Commissioner of Income Tax. The ITAT supported this decision, citing the powers of the Central Board of Direct Taxes under section 119(2)(b) to condone the delay, which would enable the assessee to avail benefits under sections 11(2) and 13(9) of the Act.

Issue 2: Addition of Rs.3,58,00,000 as unreported income
The second issue involved the addition of Rs.3,58,00,000 as unreported income by the assessee. The CIT(A) allowed this amount as relief, stating that it was an internal transfer and not an actual receipt from a third party. The department appealed this decision, arguing that the amount should have been treated as income per Accounting Standard -12 (AS-12) since it was not shown as a receipt in the return of income. The ITAT remanded the matter back to the Assessing Officer to verify if the amount was actually receivable and to consider compliance with AS-12 conditions before determining whether it should be treated as income for the relevant year or the year of actual receipt.

In conclusion, the ITAT allowed the appeal for statistical purposes, supporting the CIT(A)'s decision on the delayed filing of Form 10 and remanding the decision on the addition of Rs.3,58,00,000 back to the Assessing Officer for further examination in light of AS-12 requirements.

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