TaxTMI 
TaxTMI 
2026 (9) TMI 1979
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....d that there was no delay in furnishing Form No.10B dated 30.09.2019 at Annexure-E for Asst. Year 2019-20, C) this Hon'ble Court be further pleased to issue a writ of certiorari or any other appropriate writ, order or direction quashing adverse consequential intimation issued u/s. 143(1) dated 11.05.2020 at Annexure-F by Respondent No.3 and further be pleased to direct Respondent No.3 to process the return afresh and issuing intimation u/s.143(1) allowing the benefit u/s.11 of the Act. D) In alternative, this Hon'ble Court be pleased to call for the records of the proceedings, look into them and be pleased to issue a writ of certiorari or any other appropriate writ, order or direction quashing -565 the rejection, order dated 16.05.2025 passed by Respondent No.1 at Annexure-G1 rejecting the condonation application of the petitioner. D1) this Hon'ble Court be pleased to call for the records of the proceedings, look into them and be pleased to issue a writ of mandamus or certiorari or any other appropriate writ, order or direction reading down the Circular No.16 of 2024 dated 18.11.2024 at Annexure-J to the extent it provides for limitation for p....
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....petitioner in respect of the demand raised through the aforesaid intimation. 6. Thereafter, the petitioner filed an application under Section 119(2)(b) of the Act dated 27.03.2025, on 01.04.2025, before the respondent No.1, praying for condonation of delay of one day in filing Form No. 10B. It was stated therein that the delay of one day in filing Form No. 10B was completely unintentional, as the form had already been uploaded on 30.09.2019, but the same could be accepted only on 01.10.2019. Accordingly, the Income-tax Department considered the date of filing of Form No. 10B as 01.10.2019, resulting in a delay of one day. 7. The said application was rejected by respondent No.1 by an order dated 16.05.2025, stating that, in view of Circular No. 16/2024 dated 18.11.2024, the respondent-authority is authorized to entertain an application only up to three years from the end of the assessment year seeking condonation of delay in filing Form Nos. 9A, 10, 10B and 10BB. Accordingly, the respondent No.1 rejected the application, stating that the application seeking condonation of delay of one day was filed on 01.04.2025 for A.Y. 2019-20, which was beyond the period of three years from....
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.... till 31.10.2019. However, it is contended that since the petitioner filed the application beyond three years and hence as per the Circular No.16/2024 dated 18.11.2024, the application for condoning the delay in filing FORM 10B cannot be condoned. It is also urged that the petitioner may be relegated to file an appeal. 11. Keeping the aforesaid factual aspect in mind, it is not in dispute that the petitioner, which had obtained its audit report under Section 12A(b) of the Act on 30.09.2019, before the last date of filing the return i.e. 31.10.2019 in Form 10B, uploaded the same on 30.09.2019. However, the audit report in FORM 10B uploaded by the auditor remained to be accepted by the trustees, as required by the Department, and the same could be accepted only on 01.10.2019 i.e. on the very next day resulting into demand of Rs. 1,68,600/-. 12. The petitioner, being a trust, was under the impression that the audit report satisfied the provisions of Section 12A(1) (b) of the Act, as it was accepted only on 01.10.2019. Thus, there was a delay of one day in accepting the FORM 10B Report, thereby constraining the petitioner to file an application under Section 119(2)(b) of the Act ....
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.... tax exemptions on its charitable income. The summary assessment order dated 11.05.2020 passed under Section 143(1) of the Act reflects that date of filing of return has been extended from 30.09.2019 to 31.10.2019. Hence, it can be held that there is sufficient compliance of the provisions of Section 12A(1)(b) of the Act. The expression "along with the return of income" cannot be rigidly applied in cases as the present one. In the circumstances, where the filing of return has been extended, and FORM 10B has been accepted by the Trust before the extended date, though the return has been filed earlier before the initial date, the revenue should take a rational approach by validating FORM 10B. 15. This Court, in the case of Association of Indian Panelboard Manufacturer Vs. Deputy Commissioner of Income Tax, [2025] 482 ITR 54, while considering the provisions of Section 10B of the Act read with Section 12A and Section 119(2)(b) of the Act, has held thus: "3. The facts are that the appellant which is a charitable trust registered under Section 12AA of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'), filed return of income on 31.12.2018, in respect of the ....
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....t proceedings take place, the requirement of law is satisfied. In that view, the Income Tax Tribunal was not justified in dismissing the appeal of the assessee. 6.1 The appellant assessee has to be held to be eligible and entitled to exemptions under Section 11(1) and 11(2) of the Act and the alleged ground of non-filing of audit report alongwith return of income which was at the best procedural omission, could never to an impediment in law in claiming the exemption. 6.2 Accordingly the substantial questions of law have to be decided in favor of the appellant." 16. Thus, this Court has held that while filing the audit report is a substantive requirement, the time and manner of its submission are purely procedural, and if Form 10B is available to the Assessing Officer before assessment proceedings conclude, the statutory requirement is met. It is also held that delayed filing of the audit report is merely a procedural omission that cannot legally block the assessee from claiming substantive exemptions. It is also held that import of Section 119(2)(b) of the Act inasmuch as the application contemplated thereunder is only additional remedy for the assessee which c....