TaxTMI 
TaxTMI 
2024 (9) TMI 217
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.... short 'the Act') whereby, the application for condonation of delay in filing Form No.10B for Assessment Year 2015-16 is rejected. 4.1. The brief facts of the case are that, the petitioner-Trust is engaged in charitable and religious activities. The petitioner-Trust is duly registered under the provisions of the Bombay Public Trust Act, 1950 and is also registered under Section 12A of the Act on 07.08.1979. 4.2. It is the case of the petitioner-Trust that during the financial year 2014-15 relevant to Assessment Year 2015-16, the total income of the petitioner-Trust was Rs. 15,73,887/- as against there was application of income of Rs. 16,13,547/- resulting into excess of expenditure over income of Rs. 39,660/-. 4.3. The books of accounts of the petitioner-Trust were duly audited by Chartered Accountant-Ramesh Vasa on 07.05.2015 and Form 10B i.e. Audit Report under Section 12A (b) of the Act was also obtained on 07.05.2015. 4.4. The petitioner-Trust filed return of income for Assessment Year 2015-16 under Section 139 (4A) of the Act on 26.09.2015 declaring total income at Rs. NIL after claiming exemption under Section 11 of the Act. 4.5. However, Form 10B i.e. Audit Report was n....
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....ter again moved an application dated 25th February, 2020 under Section 119 (2) (b) of the Act for condonation of delay in filing Form 10B relying upon the Circular No.6 of 2020 dated 19.02.2020 issued by the Central Board of Direct Taxes (for short 'CBDT') and requested for condonation of delay in filing Form 10B in view of the said circular. 4.17. The respondent by order dated 03.03.2020 held that as the application which was filed on 04.12.2018 was rejected by order dated 09.09.2019, the fresh application dated 25.02.2020 was not entertained. 4.18. The petitioner thereafter filed an Appeal against the intimation passed under Section 143 (1) of the Act before the First Appellate Authority on 26th June, 2020. 4.19. Being aggrieved by the order dated 09.09.2019 passed by the respondent rejecting the application for condonation of delay in filing Form 10B, the petitioner has preferred this petition. 5.1. Learned Senior Advocate Mr. Tushar Hemani for the petitioner submitted that the petitioner was prevented by reasonable cause from filing Form 10B within the stipulated time as though the Chartered Accountant of the petitioner has issued the Audit Report in Form 10B on 07.05.2015,....
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....der u/s 143 (1) and therefore eligibility or otherwise could not be verified. The filing of form no. 10B belatedly was thus nothing but an afterthought without any genuine hardship to the assessee. 6.3. With reference to contents of para 3.2.2, it is submitted that the assessee in this case filed of Form no. 10B belatedly more than 900 days and that too after return was processed under Section 143 (1) of the Act. In absence of audit report in form no. 10B exemption claimed by the assessee could not be verified. Moreover, there is no reasonable cause shown by the assessee in not filing form no.10B within the time stipulated and therefore, the order under Section 119 (2) (b) dated 09.09.2019 is just and proper. 6.4. With reference to contents of para 3.3.1 to 3.3.4, it is submitted that reasons shown by the assessee in its application cannot be stated to be genuine hardship caused which had prevented from timely compliance. When entire income of the assessee was claimed as exemption under the provisions of the Act, the assessee is expected to be vigilant about the provisions of the Act. Moreover, mistake of the clerical staff of the CA cannot be stated to be reasonable cause. 6....
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....ned and verified by the accountant as may be prescribed. Thus, as the assessee has failed in complying with the provisions of the Act, the order dated 09.09.2019 under Section 119 (2) (b) of the Act was passed." 6.2. Referring to the above averments, it was submitted that the impugned order passed by the respondent is justified and no interference may be made while exercising extra-ordinary jurisdiction under Article 227 of the Constitution of India. 7. Considering the submissions made by learned advocates for the parties, it is not in dispute that the audit report in Form 10B was obtained on 07.05.2015 that is prior to the date of filing of the return on 26.09.2015. 8. Circular No. 2 of 2020 issued by the CBDT provides for condonation of delay in filing Form 10B for Assessment Year 2016-17 which reads as under: "4. Accordingly, the CBDT issued Circular No. 10/2019 circulated through F.No. 197/55/2018-ITA-I in supersession of earlier circular/Instruction issued in this regard, and with a view to expedite the disposal of applications filed by such trust or institution for condoning the delay in filing Form No. 10B and in the exercise of the powers conferred under section 119 (2....