CIT Exemptions Vs Indian Sugar Mills Association (Calcutta High Court)
The Revenue filed an appeal under Section 260A of the Income Tax Act, 1961 challenging the order of the Income Tax Appellate Tribunal for Assessment Year 2018-19, which had upheld the decision of the Commissioner of Income Tax (Appeals), NFAC allowing the assessee’s claim relating to delayed filing of Form 10B.
Revenue’s Contentions
The Revenue questioned the Tribunal’s decision deleting the adjustment made under Section 143(1) by allowing exemption under Section 11 amounting to ₹3,97,02,996, despite the assessee not filing Form 10B on or before the due date for filing the return of income. It also contended that the Tribunal ignored the order dated 17.08.2020 passed by the Commissioner of Income Tax (Exemptions) rejecting condonation of delay under Section 119(2)(b) and failed to appreciate CBDT Circular No. 2 of 2020, which authorised condonation of delay in filing Form 10B only up to 365 days.
Tribunal’s Findings
The Tribunal considered the subsequent CBDT Circular No. 16 of 2022 dated 19.07.2022, issued under Section 119(2)(b), which delegated power to the Principal Chief Commissioner of Income Tax/Commissioner of Income Tax to condone delay in filing Form 10B beyond 365 days and up to three years from Assessment Year 2018-19 onwards. Applying this circular, the Tribunal affirmed the order of the Commissioner (Appeals).
