KUMBHARWADA WELFARE CENTRE,MUMBAI vs. COMMISSIONER OF INCOME-TAX (A), MUMBAI

1. The present appeal has been filed by the assessee challenging the impugned order 26.09.2024 passed u/s 250 of the Income Tax Act, 1961 (‘the Act’), by the National Faceless Appeal Centre (NFAC), Delhi / CIT(A) for the assessment year 2022-23.

At the very outset, it is noticed that there is a delay of 10 days in filing the present appeal before me. In this regard, Ld. AR has taken my attention to the application 2 Kumbharwada Welfare Centre, Mumbai for seeking condonation of delay, whereas, it is submitted that during the period of preparation of appeal, the chartered accountant (CA) of the assessee was admitted to hospital for cardiac arrest and therefore he was advised complete one month bed rest and in this regard the assessee has also filed supporting affidavit and the documents of admission of the chartered accountant in the hospital.

On the other hand LD DR has not filed any counter affidavit to controvert the contents of the application for seeking condonation of delay.

The assessee has raised the following grounds of appeal:

The Ld. CIT (Appeals) has failed to appreciate the facts that the appellant trust could not upload Form-10B online before due date due to technical issues and glitches on the income tax portal but all the required data such as incomes, expenditures and auditors' details and 12AA registration details were filed / furnished in the Income Tax Return and the audit was also obtained timely. These evidences were also produced along with form 35 which have been listed in CIT order.

The basic ground in the present appeal is with regard to challenging the action of the revenue authorities disallowing the exemption of income, on account of the fact that form 10B could not be uploaded within the prescribed time.

In this regard, for adjudicating, the grounds of appeal raised by the assessee, I have heard the counsel for both the parties and have gone through the documents placed on record, judgements cited before me and also the orders passed by the revenue authorities.

From the records, I noticed that the assessee is a Public Charitable Trust registered under section 12 AA of the income tax Act. The object of the trust is to provide educational aid, medical relief and relief of poverty. The assessee trust filed its return of income on 1/10/2022 by filing details of audit like date of submission of audit report dated 3/09/2022 by generating UDIN dated 3/09/2022. It was submitted that due to frequent changes in software glitches the error of uploading audit report form 10B on income tax portal had happened. Although the audit report form 10B was signed with UDIN dated 3/09/2022 and thereafter income tax return was also filed on 1/10/2022 within due date. But the audit report form 10B could not be uploaded by the assessee on the portal within due date because of software glitches as it was showing technical error. It is pertinent to mention here that the date of signing of form 10B is 3/09/2022 and in this way, there was delay of 137 days in uploading audit report on the portal. However, because of this delay, 5 Kumbharwada Welfare Centre, Mumbai the total income was calculated without allowing exemption of income.

It would not be out of place to mention here that assessee had received email on 28/01/2025 that he can apply for condonation of delay in uploading audit report to jurisdictional Commissioner of Income-tax exemption, which also goes to show that there was indeed technical glitches in the software. I have gone through the CBDT circular number 16/2024 dated 18/11/2024 where in powers for condonation of delay in uploading form 10B has been delegated to the respective officers of the department. This fact alone makes it clear that there were technical glitches and the assessee was prevented with the ‘sufficient cause’ for not filing the requisite form within time. Thus, in my view the reason for not filing form 10B was beyond the control of the assessee. Since these type of difficulties were being faced by different applicants. Therefore, CBDT vide their circular had delegated the powers for condoning the delay.

I have also considered and gone through the decisions relied upon by the assessee. In the case of Shri Swami Vivekananda trust Vs DCIT, Bangalore decided on 12 July 2023 and the Dushkal Go Sewa Samiti versus ITO (E), Jodhpur decided on 06/10/2023. And 6 Kumbharwada Welfare Centre, Mumbai considering the fact that assessee had already submitted documentary evidences from serial number 1 to 9 of the paper book in support of his grounds. I am of the considered view that assessee was prevented by sufficient cause for not uploading signed audit report, form 10B because of software glitches. Therefore, I direct to condone the delay of 137 delays in uploading audit report on the portal and to allow the claim of exemption of income under section 11 of the Act for application of income of the assessee, if otherwise found entitled.

In the result, the appeal filed by the assessee stands allowed. Order pronounced in the open court on 18.02.2025. (SANDEEP GOSAIN) JUDICIAL MEMBER Mumbai, Dated 18/02/2025 KRK, PS 7 Kumbharwada Welfare Centre, Mumbai आदेश की "ितिलिप अ"ेिषत/Copy of the Order forwarded to : अपीलाथ" / The Appellant 1. ""थ" / The Respondent. 2. संबंिधत आयकर आयु" / The CIT(A) 3. आयकर आयु"(अपील) / Concerned CIT 4. िवभागीय "ितिनिध, आयकर अपीलीय अिधकरण, मु"बई / DR, ITAT, Mumbai 5. गाड" फाईल / Guard file. 6. आदेशानुसार/ BY ORDER, स"ािपत "ित ////

उप/सहायक पंजीकार ( Asst.