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Facts
The assessee, provisionally registered u/s 12A, claimed exemption u/s 11 which was denied due to late filing of Form 10 for accumulation of income. The AO/CPC processed the return u/s 143(1) disallowing the exemption, a decision upheld by the CIT(A). The assessee's counsel informed the Tribunal that a petition for condonation of delay in filing Form 10 was pending before the Pr. CIT.
Held
The Tribunal held that condonation of delay in filing Form 10 falls outside its adjudicative jurisdiction and is solely within the purview of the revenue authority. Upon the counsel's request, the Tribunal dismissed the appeal as withdrawn, with a rider allowing the assessee to restore the appeal if the matter subsequently falls within the Tribunal's jurisdiction.
Key Issues
Whether the Income Tax Appellate Tribunal has the jurisdiction to condone delay in filing Form 10 for claiming exemption under Section 11 of the Income Tax Act.
Sections Cited
Section 143(1), Section 11, Section 12A, Section 11(2), Section 139(1), Rule 17(2) of Income Tax Rules, Form 10AC, Form 10
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Income Tax Appellate Tribunal, RAIPUR BENCH, RAIPUR
Before: SHRI PARTHA SARATHI CHAUDHURY & SHRI ARUN KHODPIA
आदेश / ORDER
PER PARTHA SARATHI CHAUDHURY, JM:
The captioned appeal preferred by the assessee emanates from the order of the Ld.ADDL/JCIT(A)-6/NFAC, Kolkata dated 08.01.2025 for the assessment year 2022-23 as per the grounds of appeal on record.
2. The relevant facts in this case are that the assessee filed return of income which was processed u/s.143(1) of the Income Tax Act, 1961 of the Act by the A.O/CPC, Bengaluru making certain adjustments over and above the returned income. The only issue involved in this case is that the assessee had claimed exemption u/s.11 of the Act against income earned by it which was disallowed by the A.O/CPC as per intimation u/s. 143(1) of the Act.
3. The assessee is provisionally registered u/s.12A of the Act vide certificate in Form 10AC, dated 22.11.2021 issued by the jurisdictional Commissioner. During the year, the assessee had failed to utilize 85% of its income towards objects of the trust, therefore, as per Section 11(2) of the Act r.w.Rule 17(2) of the Income Tax Rules, the assessee was required to submit Form 10 before the jurisdictional A.O on or before due date of filing return of income prescribed u/s.139(1) of the Act. In the present case, extended due date of filing return of income was 07.11.2022 but the assessee filed Form 10 only on 06.09.2023. Since the assessee delayed in filing Form 10, the A.O/CPC, Bengaluru had denied benefit of exemption u/s.11 of the Act. The same was upheld by the Ld. CIT(Appeals)/NFAC.
At the time of hearing, the Ld. Counsel submitted that regarding condonation of delay in filing Form 10, the assessee has filed petition before the concerned Pr. Commissioner of Income Tax and proceedings are going on. That from the Bench, it was informed to the Ld. Counsel that such delay in filing of Form 10 and condonation thereof is not within the periphery of jurisdiction of the Tribunal. This can only be condoned by the revenue authority/competent authority. This was accepted by the Ld. Counsel.
Per contra, the Ld. CIT-DR supported the findings of the revenue authorities.
We are of the considered view that in this case admittedly, there has been delay in filing Form 10 by the assessee, for which, the A.O/CPC had denied benefit of exemption u/s.11 of the Act. The Ld. Counsel for the assessee has made statement at bar saying that they are exploring possibility of adjudication on the condonation of delay in filing Form 10 before the revenue authority. When in any case, such condonation of delay in filing of Form 10 is outside the adjudicative jurisdiction of the Tribunal, in such case, keeping the matter pending before the Tribunal will not serve any logical purpose. That as accepted and admitted by the Ld. Counsel, such condonation of delay in filing of Form 10 can only be adjudicated by the revenue authority/competent authority, in this regard, the Ld. Counsel submitted that the appeal may be treated as withdrawn with a rider that in case, the assessee fails to achieve logical end as per law then it may be permitted to restore the appeal. We had already opined that condonation of such delay in filing Form 10 is outside the adjudicative jurisdiction of the Tribunal and such matter can only be dealt with by the revenue authority/competent authority. Nonetheless, keeping in view the prayer of the assessee, we dismiss the appeal as withdrawn by it with a rider that the assessee may file for restoration of this appeal as per law if the matter is within adjudicative jurisdiction of the Tribunal.
As per the above terms, grounds of appeal raised by the assessee stands dismissed as withdrawn.
In the result, appeal of the assessee is dismissed. Order pronounced in the open court on 24th April, 2025.