St. Tomas Education and Welfare Society Indore Vs Revenue Department And Others (Madhya Pradesh High Court)
Madhya Pradesh High Court has intervened in a tax dispute, allowing a charitable society to condone delays in filing its Income Tax Return (ITR), Form 10B, and Form 10, citing the widespread disruptions caused by the COVID-19 pandemic. The ruling in St. Tomas Education and Welfare Society Indore Through Its Secretary Shri Raji Thomas vs. Revenue Department And Others overturns an order by the Commissioner of Income Tax (Exemptions), Bhopal, which had declined to condone the delay. The High Court’s decision heavily relies on the Supreme Court’s various orders extending limitation periods during the pandemic.
Background of the Case:
The petitioner, St. Tomas Education and Welfare Society, is a registered charitable society operating multiple schools in Indore, including Marthoma Public School, Marthoma Higher Secondary School, and Marthoma Academy. As an entity registered under Section 12A of the Income Tax Act, the society regularly files its income tax returns along with audited financial statements, Form 10, and Form 10B, given its gross receipts consistently exceed Rs. 1 crore annually.
For the Assessment Year 2020-21, the due date for filing Form 10B was January 15, 2021, and for Form 10 and the Income Tax Return, it was February 15, 2021. However, the society filed its ITR, Form 10A, and Form 10B on March 9, 2021, a delay of 22 days for the ITR. The return declared a gross total income of Rs. 13,74,13,564/-, claiming deductions under Section 11, including a 15% standard deduction, resulting in a nil taxable income.
