In case of Public Charitable Trusts, with a view to prevent hardships faced by the TRUSTS in filing the Form 10 and in exercise of the powers conferred under section 119(2)(b) of the Income Tax Act 1961, the CBDT has issued Circular No. 6/2020 dated 19.02.2020 giving powers to the Jurisdictional Commissioners to admit Condonation Petition and decide on merit the condonation of delay in filing Form No. 10.
But Assessment Orders were passed previously by the Assessing Officers in regular assessments without considering the application filed by the TRUSTS for condonation of delay and raising huge demands. The TRUSTS were put to lot of trouble because they have to pay 20% of the demand and file appeals. The C.I.T (Appeals), before whom the appeals were filed in such cases, were reluctant to pass orders in favour of the TRUSTS because the only issue before them is the condonation and the CIT, who has to pass order condoning the delay, before whom the Condonation Petition is pending, is of the equal rank. The CIT, before whom the condonation petition is pending, is also reluctant to pass order condoning the delay since the assessee has gone on appeal. Because of this peculiar situation the appeals are pending before CIT (Appeals). There will be numerous such cases from A.Y. 2016-17 to 2018-19 pending with CIT (Appeals).
Now the FACELESS ASSESSMENT TEAM has also started passing such orders without considering the pending petition for condonation before the jurisdictional CIT, even though the same were brought to their knowledge on receipt of draft assessment orders. It will be of great help to the Trusts if suitable instructions are given to the Assessing Officers in the Faceless Assessment Scheme as well as the Commissioners of Income Tax, who have to dispose of appeals in the Faceless Appeals Scheme and to the jurisdictional Commissioners of Income Tax to act harmoniously to condone the delay and pass orders accordingly, which will go a long way in relieving the TRUSTS from this ordeal and in deleting the artificial demands.
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We have to remai FACELESS to do even a wrong thing so that accountability cannot be fixed