TMI Blog2022 (7) TMI 1050X X X X Extracts X X X X X X X X Extracts X X X X ..... Considering the hardship faced by the assessee, the CBDT issued Circular No. 7/2018, authorizing Commissioner of Income Tax, to admit belated application in Form No. 10 in respect of Assessment Year 2016-17 which were filed belatedly. Thus, the finding of the ld. CIT(A) that, he has no power in condoning the delay in filing Form 10B is legally correct in law. As rightly argued by the Ld. D.R., the assessee seems to be consistently filing the above Form 10B belatedly, for which proper remedy left to the assessee is approaching the Administrative CIT, who is to condone the delay but not with filing appeal u/s. 250 of the Act. We do not find any infirmity in the order passed by the CIT(A) and it has open to the assessee to avail the appro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red to as the Act ) relating to the Assessment Year (A.Y) 2018-19. 2 The brief facts of the case is that the assessee is a Trust registered u/s. 12AA of the Act. For the Assessment Year 2018-19, the assessee filed its Return of income on 31/08/2018 declaring Nil income. The assessee received receipts amounting to Rs. 48,00,000/- out of which Rs. 1,37,628/- was applied towards the object of the trust, whereas Rs. 46,62,372/- was applied as per clause (2) of Section 11 of the Act. The assessee received a communication from the Assessing Officer informing the assessee has not filed the Audit Report. Immediately thereafter, the assessee realized its mistake and filed the Audit Report in Form 10B on 15.03.2019 by uploading the same in electr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against this order, the assessee is in appeal before the Tribunal. Ld. Senior Counsel, Mr. Tushar Hemani appearing for the assessee submitted that the assessee is a charitable institution and it has also registered by the Commissioner u/s. 12AA of the Act. Similar issue arose in assessee s own case for the Asesment Year 2017-18 wherein the assessee challenged the order u/s. 154 of the Act, wherein Ld. CIT(A) vide order dated 28.08.2020 condoned the delay and thereby allowed the appeal and the exemption u/s. 11 of the Act was granted to the assessee. The Ld. Senior Counsel also submitted the condition to file Form 10B along with the Return of Income is directory in nature and failure to file such Form NO. 10B is a technical or venial breach ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2017-18 is also not legally valid decision, since CIT(A) has no power to condone the delay in filing Form 10B as per Section 119(2(b) of the Act. Thus the assessee Trust seems to be regularly defaulting in not filing Form 10B along with the Return of Income for the present assessment year also though, the amendment has taken place with effect from 01.04.2016 onwards. In the above circumstances of the case, the dismissal of the appeal by the Ld. CIT(A) is correct in law. The assessee has a proper remedy before the jurisdictional CIT/PCIT/DIT for condoning the delay in filing Form 10B. Therefore, the appellate order passed by the CIT(A) does not require any interference and the same is passed in accordance with the provisions of the Act and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... previous year, it has to be accumulated and applied for such purposes in accordance with various conditions provided in the section. 2. The Finance Act, 2015 amended section 11 and section 13 of the Act with effect from 1-4-2016 (A.Y. 2016-17). Consequently, Income-tax Rules, 1962 (hereafter 'Rules') were also amended vide the Income-tax (1st Amendment) Rules, 2016. As per the amended provisions of the Act read with rule 17 of the Rules, while 15% of the income can be accumulated indefinitely by the trust or institution, 85% of income can only be accumulated for a period not exceeding 5 years subject to the conditions, inter alia, that such person submits the prescribed Form No. 10 electronically to the Assessing Officer withi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visions of the Act 6. 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 subsection (5) of section 11 of the Act. 6.2. As per the above circular, filing of Form 10B electronically along with the Return of Income has become mandatory because of the amended Sections 11 13 of the Act, by the Finance Act, 2015. This being th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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