TaxTMI 
TaxTMI 
2024 (6) TMI 1418
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....oner of Income Tax (Appeals), National Faceless Appcal Centre erred in not accepting the contention of assessee and disallowing the claim of the assessee u/s 11(2) of the Income Tax; therefore order passed is unjustified, unwarranted and excessive. 4. On the facts and circumstances the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre erred in not considering the circular of CBDT which clearly states delay should be condoned; therefore without considering the circular order passed is unjustified, unwarranted and excessive. 5. The appellant denies liability of interest U/s. 234A, 234B and 234C of the income Tax Act, 1961, without prejudice the levy of interest is unjustified, unwarranted and excessive." 3. Facts in Brief:- In the present case, the assessee Trust is registered under the Societies Act, 1985. The assessee Trust is also registered under the Bombay Public Trust Act, 1950. The trust is mainly formed for carrying out activities in the field of nature education, Forests & Wildlife Conservation, employment generation and research programs. The assessee filed its return of income on 19/03/2018, declaring net taxable income at R....
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....this office's letter dt. 01.08.2019, the assessee trust was asked to show cause why deduction claimed u/s 11(2) should not be denied in its case. To this, the assessee trust submitted a reply pleading that return of income filed before 31.03.2018 were within the time specified in sub-section 4 of sec. 139 alongwith form 10 & 10B then that should be considered to have been filed within time. The assessee also cited case laws of Bombay HC & Delhi HC. I have gone through the submissions of the assessee carefully. The case laws cited by the assessees are not applicable in this case. Further, the assessee's plea that return of income filed u/s 139(4) of the I.T. Act, 1961 is also rejected. By virtue of sub-sec. 9 of sec. 13 of the I.T. Act, 1961, inserted and applicable w.e.f. A.Y. 2016-17, assessee is not entitled to claim exemption u/s 11(2) if the statement referred to in clause (a) of the sec. 11(2) is not furnished on or before the due date specified under sub-sec.(1) of sec. 139 for furnish the return of income for the previous year. Sec. 139(4A) stipulates that where a return of income is not furnished by due date u/s 139(1), then it must be furnished before the ....
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.... or institution is to be furnished in Form no. 1013. As per Rule 12(2) of the Rules, such audit report is to be furnished electronically. The failure to furnish such report in the prescribed form along with the return of income results in disentitlement of the trust from claiming exemption under sections 11 and 12 of the Act. 3. Representations have been received by the Board/field authorities stating that Form no. 1013 could not be filed along with the return of income for AY 2016-17 and AY 2017-18. It has been requested that the delay in filing of Form no. 108 may be condoned. Previously, vide instruction in F. No. 267/482/77-IT(part) dated 09.02.1978, the CBDT had authorized the ITO to accept a belated audit report after recording reasons in cases where some delay has occurred for reasons beyond the control of the assessee. 4. Accordingly, in supersession of earlier Circular/ Instruction issued in this regard, and with a view to expedite the disposal of applications filed by such trusts or institutions for condoning the delay in filing Form no. 1013 and in exercise of the powers conferred under section 119(2) of the Act, the Central Board of Direct Taxes hereby....
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.... filing Return of Income before the due date. 2. Accordingly, in continuation of earlier Circulars issued in this regard, with the view to prevent hardship to the assessee and in exercise of powers conferred under section 119(2)(b) of the Act, the CBDT has decided that where the application for condonation of delay in filing Form 9A and Form 10 has been filed, and the Return of Income has been filed on or before 31st March of the respective assessment years i.e. Assessment Years 2016 - 17 2017-18 and - 19 the Commissioners of Income-tax (Exemptions) are authorised u/s 119(2)(b) of the Act, to admit such belated applications for condonation of delay in filing Return of Income and decide on merit. 3. For all other application for condonation of delay not mentioned above, the power of condonation of delay u/s 119(2)(b) of the Act will continue with the respective authorities as per the extant Rules and Practice." A perusal of the above CBDT circular, it is clear that the case of the Appellant does not falls in para 4(i) because in the case of the Appellant, the relevant forms have been furnished after the date specified under Section 139 of the Act. ....
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....ng the hearing before us, the learned Counsel for the assessee argued that for the year under consideration, the assessee filed Form no.10 on 10/11/2017, i.e., before filing of return of income, as the due date of filing of return of income was extended upto 07/11/2017. He submitted that there was a delay of 03 days only in filing of Form no.10, due to some technical reason. The learned Counsel further submitted that in accordance with Clause-2 of Circular no.6/2020 dated 19/02/2020, which is reproduced by the learned CIT(A) in his order at Page-8, the appeal of the assessee is covered by the said Circular no.6/2020 (supra), the relevant portion is reproduced below for reference:- "2. ....... With the view to prevent hardship to the assessee and in exercise of powers conferred under section 119(2)(b) of the Act, the CBDT has decided that where the application for condonation of delay in filing from 9A and Form 10 has been filed, and the return of income has been filed on or before 31st March of the respective assessment year i.e. Assessment Years 2016-17, 2017-2018 and 2018-19, the Commissioners of Income-tax (Exemptions) are authorised u/s. 119(2)(b) of the Act, to admit ....
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....orm 10 and also of filing Return of Income before the due date. 2. Accordingly, in continuation of earlier Circulars issued in this regard, with the view to prevent hardship to the assessee and in exercise of powers conferred under section 119(2)(b) of the Act, the CBDT has decided that where the application for condonation of delay in filling Form 9A and Form 10 has been filed, and the Return of Income has been filed on or before 31 S1 March of the respective assessment years i.e. Assessment Years 20 16-17,20 17-18 and 2018-19, the Commissioners of Income-tax (Exemptions) arc authorised u/s 119(2)(b) of the Act, to admit such belated applications for condonation of delay in filing Return of Income and decide on merit. 3. For all other application for condonation of delay not mentioned above, the power of condonation of delay u/s 119(2)(b) of the Act will continue with the respective authorities as per the extant Rules and Practice. 17.2 Earlier also a Circular No. 7/2018 dt. 20/12/2018 was issued by the CBDT which read as under: SECTION 119 OF THE INCOME TAX ACT, 1961- CONDONATION OF DELAY UNDER SECTION 119(2)(b) OF THE INCOME-TAX ACT, 1961 IN F....
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....ts for condoning the delay and in oxercise of the powers conferred under section 119(2)(b) of the Act, the Central Board of Direct Taxes hereby authorizes the Commissioners of Income-tax, to admit belated applications in Form No. 9A and Form No. 10 in respect of AY 2016-17 where such Form No. SA and Form No. 10 are filled after the expiry of the time allowed under the relevant provisions of the Act . The Commissioners will, while entertaining such belated applications in Form No. 94 and Form No. 10, satisfy themselves that the assessee was prevented by reasonable cause from filling of applications in Form No. 9A and Form No. 10 within the stipulated time. Further, in respect of Form No. 10 the Commissioners shall also satisfy themselves that the amount accumulated or set apart has been invested or deposited in any one or mace of the forms or modes specified in sub-section (5) of section 11 of the Act. 17.3 From the aforesaid Circular it would be clear that in the genuine case of belated application in Form No. 10, the delay may be condone. In the present case the assessee furnished the Form No. 10 before completion of the assessment. 17:4 On a similar iss....