Associated Chambers of Commerce And Industry of India Vs Deputy Commissioner of Income Tax & Ors. (Delhi High Court)
Delhi High Court held that action of reassessment merely on the allegation of delayed digital filing of Form 10 without based on the formation of an opinion that income chargeable to tax has escaped assessment.
Facts- The writ petitioner is a company registered under Section 8 of the Companies Act, 2013 and additionally holds a valid registration referable to Section 12-AA of the Income Tax Act, 1961. It impugns the reassessment action initiated by the respondents pertaining to Assessment Year 2016-17.
The respondents have essentially initiated reassessment proceedings against the petitioner on account of a failure to upload and digitally file Form 10 on or before the due date prescribed under Section 139 of the Act.
Conclusion- Held that in our considered opinion, an action for reassessment would have to be based on the formation of an opinion that income chargeable to tax has escaped assessment. That primordial condition would clearly not be satisfied on the mere allegation of a delayed digital filing of Form 10.
Held that a Division Bench of the Gujarat High Court has in its decision rendered after the insertion of the 2015 Act and the 2016 Amendment Rules in Association of Indian Panelboard Manufacturer vs. Deputy Commissioner of Income-tax clearly held that the electronic submission of Form 10B is essentially a matter of procedure as opposed to being a mandatory condition which may be recognized to form part of substantive law. The appellant assessee has to be held to be eligible and entitled to exemptions under Section 11(1) and 11(2) of the Act and the alleged ground of non-filing of audit report alongwith return of income which was at the best procedural omission, could never to an impediment in law in claiming the exemption.
