AL AMEEN ISLAMICK TRUST,HOWRAH vs. ADDITIONAL DIRECTOR OF INCOME TAX, CENTRALIZED PROCESSING CENTRE, , BENGALURU

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ITA 617/KOL/2024Status: DisposedITAT Kolkata20 June 2024AY 2020-21Bench: Shri Sonjoy Sarma (Judicial Member), Shri Rakesh Mishra (Accountant Member)4 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal set aside the issue to the Assessing Officer to consider the order condoning the delay and allow deductions under Section 11. The appeal was allowed for statistical purposes.

What were the facts?

The assessee trust filed its audit report in Form 10B late for AY 2020-21. The CIT(A) dismissed the appeal due to the delay. Subsequently, the assessee obtained condonation of delay from the jurisdictional CIT(E) under Section 119(2)(b).

What were the issues?

Whether the delay in filing Form 10B can be condoned and if so, whether deductions under Section 11 should be allowed.

Which sections of the Income-tax Act were involved?

Section 11,Section 119(2)(b),Section 12A(1)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA BENCH ‘C’, KOLKATA

Before: Shri Sonjoy Sarma & Shri Rakesh Mishra]

Hearing: 19.06.2024Pronounced: 20.06.2024

ORDER

Per Sonjoy Sarma, JM:

1.

This appeal of the assessee for the assessment year 2020-21 is directed against the order dated 31.01.2024 passed by the ld. Commissioner of Income-tax, Appeal, Addl/JCIT (A)-1, Chennai [hereinafter referred to as ‘the ‘ld. CIT(A)’].

2. At the outset, ld. AR of the assessee stated that the appeal is filed against the order of ld. CIT(A) dated 31.01.2024 passed by ld. ADDL/JCIT(A)-1, Chennai dismissing the appeal in relation to denial of deductions for applications and accumulation u/s 11 for the assessment year in question. The ld. CIT(A) while passing the impugned order stating that the audit report in Form No. 10B was electronically filed on 22.03.2021 while the due date has been 15.01.2021. Therefore, the appellate authority did not have any power to consider the appellant’s case for condonation of delay in filing Form No. 10B. Accordingly, the appeal of the assessee was dismissed.

3. During the intervening time, the assessee had submitted an application on 12.12.2023 before the Jurisdictional Ld. Commissioner Al Ameen Islamick Trust of Income-tax (Exemption), Kolkata praying for condonation of such delay filing an application u/s 119(2)(b) of the Act. The ld. AR further stated that the Ld. Commissioner of Income-tax (Exemption), Kolkata has passed an order dated 14.05.2024 u/s 119(2)(b) of the Act condoning the delay occurred in filing the audit report in Form No. 10B for the assessment year in question. He furnished the copy of the above referred order dated 14.05.2024 which is as under: “1. The assessee has filed application for condonation of delay in filing Form 10B for the A.Y. 2020-21 on 12/12/2023.

2.

As per record, the Audit Report in Form 10B was filed on 22/03/2021. The due date of filing Form 10B for the A.Y. 2020-21 was 15/01/2021. Hence, there was delay in filing Audit Report in Form 1OB as per provisions of Section 12A(1)(b) of the Income Tax Act, 1961.

3.

Vide DIN & letter No. ITBA/COM/F/17/2023-24/1059824693(1) dated. 17/01/2024 was requested to furnish certain documents as well as explanation for delay in filing of Form 10B for the A.Y. 2020-21. Response filed on 26/02/2024 accordingly by the applicant.

4.

The application of the assessee dated 12/12/2023 is considered in the light of the CBDT Circular No. 2/2020 [F. No. 197/55/2018-ITA-I] dated 03.01.2020 and decided accordingly.

5. As per Rule 17B of the Income Tax Rules, 1962, the audit report of the accounts of assessee has to be furnished in Form 10B.

6. The assessee has furnished Audit Report in Form 10B for the Assessment Year 2020-21 electronically on 22/03/2021 whereas the prescribed due date was 15/01/2021. Thus there has been a delay of Sixty Six (66) days.

7.

As per Circular No. 2/2020 [F. No, 197/55/2018-ITA-I], dated 19/07/2022 has been authorized to admit belated application of condonation of delay under section 119(2)(b) of the Income Tax Act and decide on merits and satisfy himself that as to whether the assessee was prevented by reasonable cause from filing such application within the stipulated time.

8.

The explanation furnished by the applicant towards delay in filing of Form 10B for the A.Y. 2020-21 is considered.

9.

Considering the submission of the applicant, the delay of sixty six (66) days in filing Form 10B for A.Y. 2020-21 is hereby condoned. However, no interest u/s 244A of the Act will be allowed to the appellant.”

Al Ameen Islamick Trust 4. The ld. AR praying before the bench kindly direction may be given to the assessing officer ADDL/JCIT(A)-1, Chennai, CPC, Bengaluru to take into account the above referred order dated 14.05.2024 passed by ld. Commissioner of Income-tax (Exemption), Kolkata condoning the delay occurred in filing the audit report in Form No. 10B and in pursuance of the said order direction may be given to allow the deductions for applications and accumulation u/s 11 of the Act as claimed by the assessee in its return of income for the assessment year under consideration.

5.

We after hearing the rival submission of the parties and perusing the material available on record find that in the present appeal, the ld. CIT(E), Kolkata vide order dated 14.05.2024 condoning the delay occurred in filing the audit report in Form No. 10B. Accordingly, we set aside the issue to the file of assessing officer, ADIT, CPC, Bengaluru to take into account the above referred order allowing deductions for applications and accumulation u/s 11 of the Act as claimed by the assessee for the assessment year under consideration. In terms of the above, the appeal of the assessee is hereby allowed for statistical purposes.

6.

In the result, the appeal of the assessee is allowed for statistical purposes.

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