Shilparamam Arts Vs Additional / Joint / Deputy / ACIT / ITO (Telangana High Court)
The petitioner challenged the order dated 31.07.2023 passed by the Commissioner of Income Tax (Exemptions), rejecting its application for condonation of delay in filing Form 10B for the Assessment Year 2017-18 under Section 119(2)(b) of the Income Tax Act, 1961, along with the consequential orders passed thereafter.
The petitioner, an establishment registered under Section 12A of the Act, filed its original income tax return on 31.10.2017. Owing to certain defects, the return was revised and filed on 02.11.2017, declaring nil income and claiming exemption under Section 12A. Subsequently, reassessment proceedings were initiated under Section 147, a notice under Section 148 was issued on 19.09.2019, followed by a notice under Section 142(1), and an assessment order under Sections 147, 144B and 114 was passed on 24.09.2021. In the assessment order, the Assessing Officer treated cash deposits of ₹87,13,060 as unexplained money under Section 69A read with Section 115BBE.
The petitioner contended that none of the notices, including show cause notices, had been served upon it. After learning about the assessment order at a later stage, it filed a statutory appeal under Section 246A before the Commissioner of Income Tax (Appeals), where the matter remained pending. During the pendency of that appeal, the petitioner filed an application on 14.02.2023 before the Commissioner of Income Tax (Exemptions) seeking condonation of delay in filing Form 10B.
