Case Law Details
Bhalchandra Educational Trust Vs CIT (Exemptions) (ITAT Lucknow)
CBDT vide Circular No. 7/2018 dated 20/12/2018 has issued directions for condonation of delay u/s 119(2)(b) of the Act in filing of Form 10 and Form 9A for assessment year 2016-17.
The analysis of directions of CBDT vide this circular reveals that since assessment year 2016-17 was the first year where the Form 10 was to be filed electronically and there was genuine hardship and therefore, vide this circular the CBDT directed the authorities for condonation of delay in filing Form 10. However, it has been stated in the said Circular that Commissioners while entertaining such belated applications shall satisfy themselves that the assessee was prevented by reasonable cause from filing of application in Form 10 within the stipulated time. The circular further states that Commissioners shall also satisfy themselves that the amount accumulated or set apart has been invested or deposited in any one or more of the forms or modes specified in sub-section (5) of section 11 of the Act. The order of learned CIT (Exemptions) states that the reason cited by the assessee society for not filing the Form 10 and income tax return within the due date cannot be accepted in the absence of any supporting evidence and also the assessee did not furnish any evidence regarding the investment of accumulated amount in specified modes/manner as per section 11(5) of the Act. Learned counsel for the assessee had invited our attention to an affidavit filed before learned CIT (Exemptions) wherein the reason for not filing the return of income and Form 10 were explained to be the illness of child of accountant and also due to crash of hard disk of computer. Learned counsel for the assessee had argued that these reasons were quite genuine and learned CIT (Exemptions) should have accepted these reasons and should have condoned the delay.
we are of the opinion that the matter requires reconsideration at the end of learned CIT (Exemptions) who should reexamine the reasons for failure on the part of the assessee to file Form 10 and return of income within the prescribed period of time and should also examine the investment of accumulated fund in the specified assets and then pass a fresh order.
FULL TEXT OF THE ORDER OF ITAT LUCKNOW
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