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Facts
The assessee filed a revised return claiming relief under Section 89 for arrears of salary. However, Form 10E was filed belatedly, after the assessment order under Section 143(1) was passed. The tax authorities denied the relief solely on this ground.
Held
The Tribunal held that the filing of Form 10E is a procedural requirement and that relief should not be denied if the form is filed belatedly, especially when there is no mala fide intention or negligence. The matter was remanded back to the AO for verification and grant of eligible relief.
Key Issues
Whether relief under Section 89 can be denied solely for the belated filing of Form 10E, even if filed before the appeal.
Sections Cited
89, 143(1), 250, 21AA
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Income Tax Appellate Tribunal, SMC BENCH, PUNE
Before: Dr. MANISH BORAD
Assessee by : Shri Kishore Phadke Revenue by : Shri Deepak Kumar Kedia, JCIT Date of hearing : 09.07.2025 Date of : 16.07.2025 pronouncement आदेश/ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
This appeal at the instance of assessee pertaining to Assessment Year 2022-23 is directed against the order passed by the Ld. CIT(A) National Faceless Appeal Centre, (NFAC) Delhi u/s 250 of the Income-tax Act, 1961 dated 26.03.2025 which in turn is arising out of the Assessment Order passed u/s 143(1) dated 07.02.2023 of the Income Tax Act, 1961.
Assessee has raised following grounds of appeal:-
1. The learned CIT(A), National Faceless Appeal Centre (NFAC), erred in law and on facts in upholding intimation u/s 143(1) passed by DCIT, CPC Bangalore thereby denying the relief claimed u/s 89 of Rs. 66,173 on account of delay in filing Form 10E by the appellant.
2. The learned IT authorities erred in law and on facts in denying the relief u/s 89 solely on account of non-filing of Form 10E in time. Appellant contend that Income Tax Act, 1961 does not specify any strict time limit for filing Form 10E thereby action of learned IT authorities of denying the relief is arbitrary in nature and hence uncalled for.
The learned IT authorities ought to have appreciated that- -Section 89 does not provide for disallowance of relief due to delay in filing of Form 10E. -Rule 21 AA does not provide for disallowance of relief u/s 89 in case of delay in filing Form 10E -Rule 21AA uses the phraseology "may furnish" instead of "shall fumish". -The delay in filing Form 10E was not wilful or deliberate on the part of appellant. -The delay in filing Form 10E did not prejudice the interests of the revenue.
The learned IT authorities ought to have condoned delay of approx. 8 months which crept into filing of Form 10E & ought to have allowed relief u/s 89 of the ITA, 1961.
The appellant craves leave to add, alter, clarify, explain, modify, delete any of the grounds of appeal, and to seek any just and fair relief.
3. At the outset Ld. Counsel for the assessee submitted that the relief claimed by the assessee u/s 89 of the Act has been denied solely on account of non filing of Form 10E in time. The only prayer made is that the Jurisdictional Assessing Officer (JAO) may be directed to accept the Form No. 10E and grant the relevant claim u/s 89 of the Act. Reliance placed on the decision of Court Bench, Indore in the case of Yashwant Singh Pawar Vs. ITO, Dhar dated 21.12.2023.
4. On the other hand Ld. Departmental Representative (DR) supported the order of Ld. CIT(A).
5. I have heard rival contentions and perused the record placed before me. The assessee is an individual and original return for A.Y. 2022-23 furnished on 31.07.2022 declaring total income at Rs. 12,47,230/-and claiming refund of Rs. 4,820/- Subsequently revised return filed on 31.12.2022 claiming refund of Rs. 42,920/- In the revised return assessee claimed relief u/s 89 of the Act towards arrear of salary. The assessee is required to furnish Form No. 10E under rule 21AA of the Income Tax rules, 1962. However Form No. 10E was filed belatedly on 14.03.2023 but before that CPC passed the order u/s 143(1)(a) on 07.02.2023. In the case of Yashwant Singh Pawar (Supra) coordinate Bench, Indore while dealing with the similar issue and on observing that Form No. 10E has been filed after processing the return but before filing the appeal before Ld. CIT(A), has decided in favour of assessee and held as under:- 7. We have considered submissions of both sides and examined the documents. After a careful consideration, we find that the assessee has though not submitted Form No. 10E before fling return of income but immediately after receiving intimation u/s 143(1) and before filing first- appeal, it was filed. We are consciously aware that in many situations, particularly in the matters of exemption, relief, etc., whenever this issue has cropped before the courts that the filing of any prescribed form is a procedural requirement or mandatory, the courts are liberal and judicious in holding requirement as procedural and thereby directing the revenue to allow substantive benefit to assessee even if the form is filed belatedly. We find that the assessee is a senior citizen and retired Govt, employee, hence there is no mala fide intention or attempted negligence on the part of assessee in not filing form in time. Therefore, taking a judicious note, we are inclined to hold that the assessee should be given the benefit of relief as per Form No. 10E subsequently filed. Hence, we remand this matter back to the file of AO. The AO shall verify Form No. 10E filed by assessee and allow the eligible relief. With these directions, the assessee’s appeal is allowed.
Going through the above finding of the Court Bench, Indore in the case of Yashwant Singh (Supra) and same being squarely applicable on the facts of the given case, I am of the considered view that Form No. 10E filed by the assessee should be accepted and relief u/s 89 of the Act may be granted after verification of details furnished in Form 10E. Hence I remit back this issue of relief u/s 89 of the Act to the file of Ld. Jurisdictional Assessing Officer (JAO) who shall carry out the necessary verification as per the directions given above after duly considering Form No.10E E-filed by the assessee on 14.03.2023. Needless to mention that proper opportunity of hearing shall be granted to the assessee. Assessee is also directed to remain vigilant and not to take unnecessary adjournment unless otherwise required for reasonable cause. Effective Grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 16th day of July, 2025.