Jain Swetamber Murtipujak Tapagachha Sangh Vs CIT (Exemptions) (Bombay High Court)
n Jain Swetamber Murtipujak Tapagachha Sangh vs CIT (Exemptions), the Bombay High Court addressed a delay in filing Form 10 under Section 11(2) of the Income Tax Act, 1961. The petitioner, a registered trust managing a Jain temple in Mumbai, filed its income tax return for AY 2019-20 on 24th October 2019 but submitted Form 10 on 26th October 2020—361 days late. The trust sought condonation of the delay under Section 119(2)(b), but the tax authorities rejected the request, stating that the trust failed to provide a reasonable cause and should have been aware of tax filing requirements, given its longstanding registration. The authorities also noted that the trust did not proactively seek condonation but acted only after receiving an intimation from the Centralized Processing Centre (CPC) regarding the non-filing of Form 10.
The High Court overturned the rejection, accepting the explanation provided by the trust’s auditor, Mr. Hitesh Dedhia. He stated that he believed reporting accumulation in Form 10B (audit report) was sufficient and was unaware of the requirement for a separate Form 10. Due to this oversight and the COVID-19 pandemic, the form was uploaded belatedly. The Court ruled that the delay was neither intentional nor deliberate and that the trust should not suffer due to its auditor’s misunderstanding. The Court quashed the impugned order and condoned the delay, allowing the trust to proceed with rectification under Section 154, if necessary. However, it refrained from commenting on the merits of the case.
