CIT (Exemptions) Vs Manav Vikas Bahuudeshiya Gramin Seva Sanstha (Supreme Court of India)
The matter arose from a dispute regarding condonation of a delay of 687 days in filing the audit report in Form 10B for the assessment year 2016–17. The respondent authority had refused to condone the delay under Section 119(2)(b) of the Income Tax Act, holding that the reason provided—lack of awareness of newly introduced online filing by the Chartered Accountant—was not genuine. The assessee challenged this decision before the Bombay High Court.
Read Bombay HC Judgment in this case: Bombay HC Condones Form 10B Filing Delay Due to CA’s Unawareness of New Online System
The High Court examined the facts and noted that the audit report had already been filed on 18 August 2018 and that an application for condonation had also been submitted. It accepted that the delay was caused due to an unintentional oversight arising from unfamiliarity with the online filing system. The Court observed that the explanation appeared to be honest and that denying condonation would result in non-consideration of exemption benefits. It also took into account that the assessee was a trust engaged in providing medical aid to underprivileged sections. Relying on its earlier decision in Al Jamia Mohammediyah Education Society Vs. Commissioner of Income Tax (Exemptions) Mumbai, the High Court held that the case warranted condonation. Accordingly, it quashed the impugned order and allowed the delay to be condoned, subject to payment of costs of ₹10,000 to the Raman Science Centre and Planetarium, Nagpur.
