Amnos Evangelical Fellowship Vs Centralized Proceessing Centre (Andhra Pradesh High Court)
The Andhra Pradesh High Court adjudicated a Writ Petition filed under Article 226 of the Constitution of India by a religious society seeking to challenge the rejection of its application for condonation of delay in filing Form 10-B for the Assessment Year 2021-22. The petitioner, a small church registered under Section 12-A of the Income Tax Act, 1961, argued that the delay of 44 days in submitting the audit report was caused by exceptional circumstances, including the Covid-19 pandemic and the advanced age (78 years) of its treasurer, who was responsible for compliance. The society contended that its operations are limited to conducting prayers and aiding the needy, and the trustees are not computer literate, which contributed to the delay.
For the relevant assessment year, the Central Processing Centre (CPC) of the Income Tax Department in Bangalore denied the society’s exemption under Section 11 and imposed a tax liability of Rs.5,68,900 solely because the audit report was filed late. In response, the petitioner submitted an application on 14 February 2023 to the Commissioner of Income Tax (Exemptions) requesting condonation of the delay, supported by justifications, previous audit reports, and relevant documents. The Commissioner, in a letter dated 19 April 2023, sought additional documents from the petitioner to process the request. The petitioner failed to furnish the documents within the stipulated period, leading to the rejection of the application on 27 May 2023 under Section 119(2)(b) of the Income Tax Act.
