Borivli Education Society Vs CIT (Exemption) (Bombay High Court)
The Bombay High Court addressed a petition filed by an educational society challenging the rejection of its application for condonation of delay in electronically filing Form 10B for claiming exemption under Section 11 of the Income Tax Act, 1961 for Assessment Year 2014-15. The society had filed Form 10B manually within the prescribed period, which was not disputed by the Revenue. However, the form was not uploaded electronically, as the society’s Chartered Accountant was under the bona fide impression that electronic filing was not mandatory.
The society’s exemption claim was denied by an intimation under Section 143(1) dated 16 March 2016, without providing reasons or a show-cause notice. The society subsequently filed rectification applications and revised returns to comply with electronic filing requirements, but these were summarily rejected without affording principles of natural justice. The society contended that its delay was unintentional, based on professional advice, and that it had no personal gain from non-compliance.
Upon becoming aware of the electronic filing requirement, the society uploaded Form 10B on 24 March 2022 and filed an application for condonation of delay, supported by an affidavit from the Chartered Accountant explaining the bona fide misunderstanding. Despite compliance, the Tax Recovery Officer (Exemption) rejected the application, citing the delay, without an opportunity for hearing.
