Extension of time for filing Form 10 to be decided expeditiously, with tax demand kept in abeyance meanwhile.

An application under section 119(2)(b) for extension of time to file Form 10 was directed to be considered expeditiously by the competent authority after hearing the petitioner. The request arose from assessment proceedings where Form 10 for accumulation under section 11(2) had been filed cumulatively for multiple assessment years. The demand arising from the assessment order and appellate order was directed to remain in abeyance until the application is decided.

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Issues: Whether the petitioner's application under section 119(2)(b) of the Income-tax Act, 1961 for extension of time to file Form 10 required expeditious consideration, and whether the demand arising from the assessment order should remain suspended pending such consideration.

Analysis: The petitioner had been assessed after reopening of the assessment on the ground that Form 10, relating to accumulation under section 11(2), had been filed cumulatively for multiple assessment years instead of separately. In view of the limited relief sought, the application seeking extension of time was found fit to be considered by the competent authority, after hearing the petitioner, within a fixed time frame. The demand pursuant to the assessment and the appellate order was directed to remain in abeyance during such consideration.

Outcome: The competent authority is directed to consider and decide the application under section 119(2)(b) expeditiously, and the demand arising from the assessment order shall remain suspended until then.

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