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2020 (3) TMI 1202 - HC - Income TaxExemption u/s 11 - condonation of delay in filing Form 10 - claim of accumulation requires filing of Form 10 within the specified time limit - whether the prescription of Form 10 for the purpose of accumulation under section 11(2) was mandatory or directory - HELD THAT:- The Supreme Court in the case of Commissioner of Income Tax V. Nagpur Hotel Owners Association [2000 (12) TMI 99 - SUPREME COURT] considered the question of whether the prescription of Form 10 for the purpose of accumulation under section 11(2) was mandatory or directory. The conclusion was that the requirement of filing Form 10 at the time of assessment was only directory and it would suffice if the same were filed even thereafter so long as relevant information in support of the claim of accumulation was furnished by the assessee even at the time of assessment. The impugned order of assessment in this case refers to the claim of accumulation and the details of such accumulation. For this reason and in line with the judgment of Supreme Court in Nagpur Hotel [2000 (12) TMI 99 - SUPREME COURT] that has also been followed by this Court in the case of Commissioner of Income Tax V. Spic Educational Foundation [2019 (2) TMI 1438 - MADRAS HIGH COURT] the petitioner was permitted on 06.01.2020 to file a petition for condonation of delay in filing Form 10 and the Commissioner of Income Tax (Exemptions), who is the proper authority to consider the condonation of delay was impleaded suo motu in the Writ Petition as second respondent. The second respondent was directed to consider the submissions of the petitioner, and to dispose the delay condonation petition within a specified time limit. The matter was listed today for production of a copy of the order of the Commission either accepting or rejecting the request for condonation and it is seen that vide order dated 28.01.2020 passed under Section 119(2)(b) of the Act, R2 has, after consideration of the submissions of the petitioner, condoned the delay. The impugned assessment which rejects the claim of exemption solely on the ground of non-filing of Form 10 is thus set aside and the matter remitted to the file of the Assessing Authority to be re-done de novo, taking into account order of R2 dated 28.01.2020.
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