Manav Seva Samiti Vs PCIT (Exemptions) (Rajasthan High Court)
The Rajasthan High Court has provided relief to a public charitable trust, ruling that a significant delay in filing a statutory form should be condoned due to genuine hardship. In the case of Manav Seva Samiti vs. PCIT (Exemptions), the court set aside an order by the Principal Commissioner of Income Tax that had rejected the trust’s application to condone a 700-day delay in filing Form 10B. The trust argued that the delay was a result of the ill health of its president, who had suffered a severe brain stroke and was hospitalized for an extended period before his death. The court found that there was no lack of bona fide intention on the part of the trust and that the tax authorities should have adopted a more judicious and equitable approach.
The petitioner, a charitable trust registered under the Rajasthan Public Charitable Trusts Act, 1959, was managed by its president, Anandi Lal Mehta. After Mr. Mehta suffered a debilitating brain stroke, the trust’s day-to-day affairs, including the timely filing of its income tax documents, were severely affected. As a result, the audit for Assessment Year 2018-19 was delayed by 115 days, and the auditor-uploaded Form 10B was filed 700 days past the due date. The trust subsequently filed an application under Section 119(2)(b) of the Income Tax Act, 1961, which grants the authorities discretionary power to condone delays. However, this application was rejected, with the respondent arguing that in the absence of the president, a vice-president should have assumed the responsibilities.
