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Income Tax Appellate Tribunal, “C” BENCH KOLKATA
PER SANJAY AWASTHI, ACCOUNTANT MEMBER:
The present appeal is delayed by 31 days as conveyed by the ITAT Registry. The appellant has filed an affidavit requesting for condonation of the said delay as under:
“4. The reasons for such delay are submitted as under: a) the Appellant is an educational institution and its main object involves to impart education among children by running school only for the betterment of the society irrespective of any caste and creed. The Appellant society is registered, the school is affiliated by the Appropriate authority of Education Board / Council, and the governing body & members of the Appellant associated regularly did not assemble for administration activity of the Appellant. b) That the Appellant could not take decision for filling appeal before your Lordship for justice in connection of uphold assessment order under section 143(3) for the Ashrama Praktan Chhatra Sangha Assessment year 2016-17 in respect of order under Section154 read with section 250 of the Income Tax Act, 1961 in due Course i.e. within time limit. c) That the Appellant could not engage for the assignment present authorized advocate for filling appeal before your Lordship for justice in connection of uphold assessment order under section 143(3) for the Assessment year 2016-17 in respect of order under Section154 read with section 250 of the Income Tax Act, 1961 in due Course ie, within time limit. d) That the Appellant have heavily engaged for finalization of statement of account for statutory audit from 07.09.2024 to 25.09.2024 for the current financial year and also engaged for submitting the Form No. 108 from 25.09.2024 to 29.09.2024 for the current financial year. e) That the Appellant assigned on 01.10.2024 present authorized advocate to represent the matter before the Hon'ble Tribunal, Kolkata f) All these have caused delay in filing the appeal in time.
As there was no malafide intention and delay was only due to the aforementioned reasons. Due to such reasons only, the appellant was prevented in filing of the appeal in time. Therefore, it is requested that as the delay is not intentional, the delay of more or less 28 days occurred in filing of appeal may kindly be condoned and appeal may kindly be admitted for rendering substantial justice. Prayer: In view of the above submissions, it is earnestly requested with humbleness that the delay occurred in filing of the appeal is unintentional and not out of any negligence. Therefore, the delay occurred may be considered for condonation on merits in order to meet substantial justice.” 1.1 Considering the reasons advanced for delayed filing of this appeal, the delay is hereby condoned and this appeal is, accordingly, admitted for adjudication.
The impugned order in this case is an appellate order u/s 154 of the Income Tax Act, 1961 (hereafter “the Act”) dated 08.07.2024, passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [in short “the Ld. CIT(A)]. This order is in continuation of an earlier order u/s 250 of the Act dated 28.11.2022.
2.1 The short point moved before Ld. CIT (A) u/s 154 of the Act was to allow condonation of delay in the filing of Form 10 so as to avail the benefit of deduction available to an institution registered u/s 12A of the Act. The Ld. CIT(A) has recorded in para 2 of the impugned order, that the Ashrama Praktan Chhatra Sangha rectification sought by the assessee was actually falling within the legal and administrative domain of the Ld. CIT(Exemptions) u/s 119(2)(b) of the Act and not within the purview of the CIT(A), following this he proceeded to dismiss the said appeal.
Before us the Ld. AR argued on the merit of the matter and placed Circular No. 7/2018 dated 20.12.2018 for our consideration. The Ld. AR pointed out paras 5 and 6 of the said circular as under:
“5. Accordingly, in supersession of earlier Circular/Instruction issued in this regard, with a view to expedite the disposal of applications filed by trusts for condoning the delay and in exercise of the powers conferred under section 119(2)(b) of the Act, the Central Board of Direct Taxes hereby authorizes the Commissioners of Income-tax, to admit belated applications in Form No. 9A and Form No.10 in respect of AY 2016-17 where such Form No. 9A and Form No.10 are filed after the expiry of the time allowed under the relevant provisions of the Act.
The Commissioners will, while entertaining such belated applications in Form No. 9A and Form No.10, satisfy themselves that the assessee was prevented by reasonable cause from filing of applications in Form No. 9A and Form No.10 within the stipulated time. Further, in respect of Form No. 10 the Commissioners shall also satisfy themselves that the amount accumulated or set apart has been invested or deposited in any one or more of the forms or modes specified in sub- section (5) of section 11 of the Act.” 3.1 The Ld. DR supported the findings of the Ld. CIT(A).
We have considered the orders of authorities below and heard the arguments from both the sides. It is clear that technically there is no fault in the impugned order as clearly the Ld. CIT(A) could not have rectified his earlier order u/s 154 of the Act in line with the appellant’s request. However, it is clear form a plain reading of the Circular NO. 7/2018 (supra) that for AY 2016-17 (which is also the year of the present appeal), the Commissioners of Income Tax have been authorized to condone the delay in filing of Form 10 and 9A on a petition from the assessee and they have been allowed to condone the said delays after examining the reasons for the said delay. Accordingly, while, we cannot legally allow the assessee’s appeal we would hasten to add that the assessee would do well to Ashrama Praktan Chhatra Sangha approach the appropriate Commissioner of the Income Tax for redressal of his grievance, in terms of paras 5 and 6 of Circular No. 7/2018 (supra).
In the result, the appeal filed by the assessee is dismissed. Order pronounced in the court on 23.12.2024
Sd/- Sd/- [Sanjay Garg] [Sanjay Awasthi] Judicial Member Accountant Member Dated: 23.12.2024. AK, PS Copy of the order forwarded to: 1. Ashrama Praktan Chhatra Sangham Kolkata 2. The Income Tax Officer, Ward 1(4), (Exemptions), Kolkata, 3. CIT(A)- 4. CIT- 5. CIT(DR)