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2022 (7) TMI 172 - AT - Income TaxExemption u/s 11 Denied - Default filling Form No. 10 electronically - HELD THAT:- It is not in controversy that an amendment in section 11 and 13 of the Act was made vide Finance Act, 2015 applicable from 01.04.2016 (A.Y. 2016-17 onwards), whereby filing of Form No. 10 electronically to the Assessing Officer within the due date specified u/s. 139(1) of the Act, has been made as a condition for accumulation of income u/s. 11 and 13 of the Act. The CBDT while considering the representations received by the Board/Field Authorities qua delay in filing of Form No. 9A and Form No. 10 for A.Y. 2016-17, issued a Circular No. 7/2018 dated 20.12.2018 and empowered the Commissioners of Income Tax to admit belated applications in Form No. 9A and Form No. 10 qua A.Y. 2016-17 where the same are filed after the expiry of time allowed under the relevant provisions of the Act. It was further instructed to the Commissioners of Income Tax, to satisfy themselves that the Assessee was prevented by reasonable cause from filing an application in Form No. 9A and Form No. 10 within the stipulated time. In the case of CIT vs. Nagpur Hotel Owners Association (2000 (12) TMI 99 - SUPREME COURT] allowed the filing of Form No. 10 upto the stage of completion of assessment u/s. 143(3) of the Act and the Hon’ble Allahabad High Court in the case of CIT vs. Panama Chemical Works (1999 (6) TMI 3 - MADHYA PRADESH HIGH COURT] also held that filing of the audit report during the assessment proceedings by the Assessee amounts to substantial compliance with the statutory requirement. No doubt, lack of knowledge of law is not an excuse, however,considering the peculiar facts that the provision for filing of the Form No. 10 was inserted newly and made applicable from A.Y. 2016-17 onwards, which in the instant case is under consideration and therefore the Assessee committed error which prima facie seems to be bonafide and unintentional. Even otherwise the Assessee rectified its mistake by filing form No. 10 electronically along with revised return of income u/s. 139(4) of the Act, which goes to show that the Assessee has used its due Diligence and made available the form No. 10 to the Assessing Officer during the assessment proceedings itself and therefore the Assessee can not be penalized. On the aforesaid analyzations, we are of the view that the Assessing Officer should have taken into consideration the form No. 10 filed on dated 24.03.2018. Consequently, the assessment order along with impugned order is set aside and the case is remanded to the file of the Assessing officer for decision afresh by taking into consideration the FORM 10 filed along with the revised return of income, suffice to say while affording proper and reasonable opportunity of being heard to the Assessee. Assessee appeal stands allowed for statistical purposes.
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