Heralds of Good News Vs ITO (Exemption) (ITAT Visakhapatnam)
The Income Tax Appellate Tribunal considered an appeal against the order of the Commissioner of Income Tax (Appeals) for AY 2016–17, where the core issue was whether disallowance under Section 11(2) was justified due to delayed filing of Form-10.
The assessee had filed its return of income within the extended due date of 17.10.2016. However, Form-10, required for claiming accumulation of income for specific purposes under Section 11(2), was not filed along with the return. Consequently, the Assessing Officer disallowed Rs.57,04,939 and denied the benefit of accumulation. The CIT(A) upheld this disallowance.
Before the Tribunal, the assessee submitted that Form-10 was filed on 25.10.2018 and was available on record during assessment proceedings. It was argued that filing Form-10 along with the return is procedural and not mandatory, and that no prejudice would be caused to the Revenue if the matter was reconsidered. The Revenue contended that filing Form-10 with the return is mandatory but did not object to remanding the matter for fresh consideration.
The Tribunal noted that the return was filed within the due date and that Form-10 was available before the Assessing Officer during assessment. It also considered judicial precedents where delay in filing Form-10 was condoned and exemption was not denied solely on that ground.
