PARLE HINDU DEVALAYA MANDAL,MUMBAI vs. DCIT CPC, BANGALORE

The dispute in the present appeal is confined to denial of assessee’s claim of exemption under section 11(2) of the Income Tax Act, 1961 (for short "the Act").

Brief facts are, the assessee is a charitable trust and has been granted registration under section 12AA of the Act. For the assessment year under dispute, the assessee had filed its return of income on 28th September 2015, electronically declaring nil income after claiming exemption under section 11(2) of the Act for an amount of ` 22,27,410. While processing the return of income filed by the assessee, the Central Processing Centre (CPC) denied assessee’s claim of exemption under section 11(2) of the Act since the declaration in Form no.10, was not filed electronically along with the return of income. Against the intimation issued under section 143(1) of the Act by the CPC, the assessee moved an application under section 154 of the Act seeking rectification of mistake on the ground that as per existing provisions applicable to assessment year 2015–16, there was no requirement of filing Form no.10 electronically. It was submitted by the assessee, since Form no.10, was furnished manually before the Assessing Officer on the due date of return of income i.e., 28th September 2015, the claim of exemption under section 11(2) of the Act has to be allowed. The application filed under section 154 of the Act was rejected on the ground that there is no mistake apparent on the face of record requiring rectification. Against the order passed under section 154 of the Act, the assessee preferred appeal before the first appellate authority.

Before the learned Commissioner (Appeals) also, it was submitted by the assessee that filing of Form no.10, electronically was made mandatory by virtue of amendment made to rule 17, vide CBDT notification dated 14th January 2016, and was made effective from 1st April 2016. Therefore, prior to the amendment made to rule 17, there was no requirement for filing of Form no.10 electronically. The learned Commissioner (Appeals), however, did not accept the contention of the assessee and dismissed the appeal.

Reiterating the stand taken before learned Commissioner (Appeals), the learned Authorised Representative submitted, mandatory filing of Form no.10 electronically become operative from 1st April 2016. She submitted, prior to the amendment made to rule 17, by CBDT Notification dated 14th January 2016, there was no requirement of filing Form no.10, electronically. She submitted, since the assessee has filed Form no.10, manually before the Assessing Officer within the due date of filing of return of income for the impugned assessment year, assessee’s claim of exemption under section 11(2) of the Act cannot be rejected.

The learned Departmental Representative relied upon the observations of learned Commissioner (Appeals).

In the result, appeal is allowed for statistical purposes. Order pronounced in the open Court on 04.03.2020