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Income Tax Appellate Tribunal, DELHI
PER YOGESH KUMAR, U.S. JM: The present appeal is filed by the Assessee challenging the order of
Ld. Commissioner of Income Tax (Appeals/National Faceless Appeal
Centre (‘Ld. CIT(A)/NFAC’ for short), New Delhi dated 11/03/2025
pertaining to Assessment Year 2016-17.
Brief facts of the case are that, the assessee is a Society registered
u/s 12A and 80G of the Income Tax Act, 1961 ('Act' for short). During
the Assessment Year 2016-17, the Assessee transferred a sum of Rs.
25,50,000/- to utilization fund u/s 11(2) of the Act. The assessee should
2 ITA No. 75/DDN/2025 Institute of Driving & Traffic Research have filed Form No. 10 as required u/s 13(a) of the Act
electronically,however the same has been filed by the Assessee manually.
Later on, during the assessment proceedings, the Form No. 10 has been
filed electronically by the assessee. The assessment order came to be
passed wherein the Ld. A.O. has not allowed the deemed application of
income to the extent of Rs. 25,50,000/- on the ground that the assessee
has failed to file Form No. 10 electronically and passed assessment order
on 07/12/2018 by making additions of Rs. 25,50,000/-.
As against the assessment order dated 07/12/2018, assessee has
preferred an appeal before the CIT(A) and the Ld.CIT(A) vide order dated
24/07/2019, dismissed the appeal filed by the assessee. Aggrieved by
the order of the Ld. CIT(A) dated 24/07/2019, Assessee preferred an
Appeal before the Tribunal in ITA No. 137/DDN/2019. The Co-ordinate
Bench of the Tribunal after hearing both the parties remanded the
matter to the file of the A.O. with a direction to consider the Form No. 10
which was manually filed by the Assessee and the Form No. 10 filed
electronically during the Assessment Proceedings and decide the matter
in accordance with law. However, the Ld. A.O. in the second round of
litigation vide order dated 06/11/2023, once again rejected the Form No.
10 filed by the Assessee manually and recomputed the income of the
Assessee at Rs. 25,50,020/-. Aggrieved by the order of the A.O. dated
3 ITA No. 75/DDN/2025 Institute of Driving & Traffic Research 06/11/2023, the Assessee preferred an Appeal before the Ld. CIT(A).
The Ld. CIT(A) vide order dated 11/03/2025,dismissed the Appeal filed
by the Assessee which has been called in question before us.
The Ld. Counsel for the Assessee submitted that both the Lower
Authorities have erred in not complying the direction of the Tribunal in
its order dated 03/01/2023 in ITA No. 137/DDN/2019.Further
submitted that the A.O. has not allowed the application on the very same
ground that Form No. 10 has not been filed electronically. The Ld.
Counsel submitted that in compliance with the order of the Tribunal
dated 03/01/2023 in ITA No. 137/DDN/2019, should have considered
the Form No. 10 filed by the Assessee and ought to have allowed the
deemed application of income to the extent of Rs. 25,50,000/-. Thus, the
Ld. Assessee's Representative sought for allowing the Appeal.
Per contra, the Ld. Departmental Representative vehemently
submitted that, since the Assessee has not filed Form No. 10
electronically on time, the Lower Authorities have rightly not considered
the Form No.10 filed manually and passed the orders impugned which
requires no interference.
We have heard both the parties and perused the material available
on record. It is the matter of fact that in the first round of litigation the
4 ITA No. 75/DDN/2025 Institute of Driving & Traffic Research Co-ordinate Bench of the Tribunal, in ITA No. 137/DDN/2019, vide orer
dated 03/01/2023, observed that the filing of Form No. 10 electronically
came into existed w.e.f. 01/04/2016 and the Assessee must have
missed in filing the Form No.10 electronicallyand the same has been filed
on time manually before the due date of filing of the return
i.e.06/09/2016. Therefore, the Tribunal directed the A.O. to consider
the manuallyfiled Form No. 10 along with Form No. 10 filed by the
Assessee during the assessment proceedings electronically as the same
has been filed on time and further directed to decide the matter in
accordance with law. The order of the Tribunal dated 03/01/2023 has
reached finally as the Department has not challenged the said order.
However, by ignoring the direction of the Tribunal dated 03/01/2023,
the Assessing Officer once again passed assessment order without
considering the Form No. 10 filed by the Assessee, which is nothing but
blatant violation of the order of the Tribunal on the part of the A.O.
Further, the assessment order dated 06/11/2023 came to be passed
against the Assessee by making the addition/disallowance only on the
ground that the Form No. 10 was not filed electronically on time and the
A.O. has not made any adverse observation against the Assessee. In view
of the above, by considering the manual filing of Form No. 10 and Form
No. 10 filed by the Assessee during the assessment proceedings
5 ITA No. 75/DDN/2025 Institute of Driving & Traffic Research electronically as the same has been filed on time, the addition made by
the A.O. which has been sustained by the Ld. CIT(A) is hereby deleted
and we direct the A.O. to allow the deemed application of income to the
extent of Rs. 25,50,000/- in favour of the Assessee.
In the result, the Appeal of the Assessee is allowed.
Order pronounced in the open court on 06th August, 2025
Sd/- Sd/-
(S. RIFAUR RAHMAN) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 06 .08.2025 R.N, Sr.P.S* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT
ASSISTANT REGISTRAR ITAT, NEW DELHI