TaxTMI 
TaxTMI 
2026 (9) TMI 1456
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....short 'the Act') for the A.Y. 2016-17. 2. Brief facts relevant for adjudication of the instant appeal are that the Assessee filed its original return of income on 27.10.2016, declaring total income at Nil after claiming exemption u/s. 11 of the Act. The Assessee subsequently revised its return of income and claimed deemed application of income amounting to Rs. 31,22,955/- by exercising the option contemplated under clause (2) of the Explanation to section 11(1) of the Act r.w.r. 17 of the Income-tax Rules, 1962 {in short 'Rules'}. 3. The return was subsequently selected for complete scrutiny under CASS and statutory notices were issued to the Assessee. 4. The Assessing Officer (in short, "the AO") observed that the Assessee had als....
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....e Assessee contends that the remedy available u/s. 119(2)(b) of the Act, is an additional administrative remedy and rejection thereof does not take away or curtail the statutory powers of the appellate authorities to adjudicate the Assessee's claim on merits. 8. The Assessee further submits that Form No.9A was filed electronically during the subsistence of the assessment proceedings and that the delay occurred during A.Y. 2016-17, which was the first year of the newly introduced electronic filing requirement. 9. On the contrary, the Ld. DR opposes the Assessee's claim and submits that the application for condonation of delay in filing Form No.9A has already been rejected by the Ld. PCIT (Exemptions). Therefore, according the Assessee ....
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....rd Manufacturer v. DCIT, R/Tax Appeal No.655 of 2022, decided on 21.03.2023, holds that an application contemplated u/s. 119(2)(b) of the Act constitutes an additional remedy and cannot be regarded as a compulsory remedy. Consequently, a circular issued u/s. 119 of the Act cannot be construed as taking away the appellate remedy available to the Assessee. The Hon'ble High Court further holds that though the filing of the prescribed report is a substantive requirement, the mode and stage of filing constitute procedural requirements. 14. We further observe as demonstrated by the ld. Counsel that the Hon'ble Jurisdictional High Court in the case of Lakhi Trust vs. Income Tax Officer (Exemption) - Ward (1)(4) (2025) 307 Taxman 557 (Bom.)(HC) ....
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....n the ground of limitation. This is more so when the legislature has conferred wide discretionary powers upon the authorities concerned to condone the delay. For better understanding and ready reference, the conclusion drawn by the Hon'ble High Court is reproduced hereinbelow: "14. We have heard the learned Counsel for the parties. We have also perused the materials placed on record and the case laws relied upon. Admittedly, Assessment Year 2016-2017 was the first year wherein filing of Form No. 9A was prescribed by the amendment made by the Finance Act, 2015. Hence, the possibility of the Petitioner having inadvertently failed to file the same cannot be ruled out. Precisely for this reason, the Board issued various Circulars empow....
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....e has conferred wide discretionary powers to condone the delay on the authorities concerned. The relevant portion of the decision of the Hon'ble Gujrat High Court in the case of Sarvodaya Charitable Trust (supra) is reproduced hereunder :- '31. Having given our due consideration to all the relevant aspects of the matter, we are of the view that the approach in the cases of the present type should be equitious, balancing and judicious. Technically, strictly and liberally speaking, the respondent no.2 might be justified in denying the exemption under section 12 of he Act by rejecting such condonation application, but as assessee, a public charitable trust past 30 years who substantially satisfies the condonation for availing ....
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....ned by the Private Secretary/ Personal Assistant of this Court. All concerned will act on production by fax or email of a digitally signed copy of this order." 16. Coming to the facts of the instant case, the Assessee filed its original return of income on 27.10.2016 and the revised the same on 29.03.2017. Further the Assessee filed Form No.9A electronically on 19.01.2017, which goes to show that the Form 9A was available during the subsistence of the assessment proceedings. 17. It is also relevant fact that A.Y. 2016-17 was the first year, in which the requirement of electronic filing of Form No.9A was introduced. The possibility of an inadvertent or bona fide omission on the part of the Assessee, therefore, cannot be ruled out. The ....