HIMACHAL PRADESH NURSES REGISTRATION COUNCIL,SHIMLA, HIMACHAL PRADESH vs. INCOME TAX OFFICER EXEMPTIONS, SOLAN, HIMACHAL PRADESH

Upon perusal of assessment order, it could be seen that the assessee is A registered entity u/s 12AA. The assessee set apart income of Rs.47.41 Lacs u/s 11(2) for which the assessee was required to file Form-10 in terms of Rule 17 which mandate the assessee to e-file the same within due dates as prescribed u/s 139(1). However, the assessee failed to e-file the same along with return of income and it filed a manual copy thereof at the time of assessment. The assessee submitted that Form-10 was hitherto being filed manually during assessment proceedings. However, e-fling has been made mandatory w.e.f. 01-04-2016 and this being the first year, Form-10 could not be e-filed in this manner. However, Ld. AO denied the aforesaid claim of the assessee and framed the assessment. The Ld. CIT(A) confirmed the same against which the assessee is in further appeal before us.

It clearly emerges from the facts that the assessee is otherwise eligible for impugned claim. The only reason to deny the same is the fact that Form-10 has not been e-filed, which as per extant rules in force w.e.f. 01-04-2016, was required to be filed digitally. Nevertheless, as per past practice, the assessee has duly filed the same during assessment proceedings which, in our considered opinion, is mere procedural irregularity and the same could not vitiate the claim of the assessee. The assessee made substantial compliance of law and there is no other reason to deny the claim of the assessee. Therefore, we direct Ld. AO to allow the aforesaid claim of the assessee.