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TMI Blog2023 (4) TMI 1377X X X X Extracts X X X X X X X X Extracts X X X X ..... e. The Central Processing Cell (CPC) of Income tax in the intimation processed under section 143(1) of the Act disallowed the impugned exemption/deduction on the ground Form 10 was not furnished along return of income. 4. The aggrieved assessee preferred an appeal before the learned CIT(A). The National Faceless Appeal Center (NFAC) confirmed the intimation order by observing as under: 5. I have considered the submission made before me. The main contention of the assessee is that the denial of exemption claimed u/s.11(2) should be revoked now that it had filed the Form 10 on 07.12.2018 thereby fulfilling the requirements. However, it is seen that this Form No. 10 is filed much late beyond the stipulated time and there has been no condonation on this delay by the designated authority i. e. CIT(Exemption), Ahmedabad. The argument put forward by the Assessee before the undersigned also do not hold ground in the absence of such an order. Moreover, the plea that prior to 2016-17, there was no requirements to file Form 10 electronically as per Rule 17 of the I. T. Rules also does not come to the rescue of the appellant, since it is only electronic filing which has been introduced w. e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nces has been answered in the favour of the assessee by the coordinate bench of this Tribunal in the case of Shree Harsaniji Public Charitable Trust v. Income-tax Officer (Exemption) reported in 142 taxmann.com 456 wherein it was held as under: 8. We have given our thoughtful consideration and perused the material available on record. At the first instance, the assessee was denied deduction under section 11(2) for the reason that Form No. 10 was not accompanied along with return of income, thereby 143(1) intimation was passed. It is thereafter the assessee uploaded Form No. 10 by online on 2-1-2017 and filed its rectification application on 6-10-2017. The same was processed by DCIT(CPC) by order dated 31-10-2019 holding that, "on verification it was seen that there was no prima facie error in the order sought to be rectified. Therefore, the rectification petition was rejected". Thus, DCIT(CPC) has not even discussed why 154-petition has been rejected specially in a case where Form No. 10 has been filed belatedly, especially when CBDT's Circular No. 723 dated 3-6-1980 is very much there, and also supported judgments of Apex Court and other High Courts were there. Aggrieved aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r and spirit. We also find that the ld.CIT(A), NAFC has simply extracted the written submissions filed by the assessee, wherein Circular No. 273 dated 3-6-1980 was also reproduced in which the Board has clearly authorized Commissioners to admit applications under section 11(2) of the Act read with rule 17 of the Incometax Rules, 1962 from persons deriving income from property held under trust wholly for charitable or religious purposes for accumulation of such income to be applied for such purpose in India when the aforesaid application (herein Form No. 10) are filed beyond the time stipulated, subject to the conditions that - (a) that the genuineness of the trust is not in doubt; (b) delay is due to oversight mistake; (c) trustees or the settlers have not been benefited by such failure directly or indirectly; 12. Further, Hon'ble Supreme Court in the case of Nagpur Hotel Owners Association (supra) has held that it is abundantly clear from the wordings of sub-section (2) of section 11 that it is mandatory for the person claiming the benefit of section 11 to intimate to the assessing authority the particulars required under the Rule 17 in Form No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nish Form No. 10 along with Return of Income from the Asst. Year 2016-17 onwards. As per the CBDT Circular No. 7 of 2018, representation from the assessee that Form No. 9A and 10 could not be filed in specific time for the Asst. Year 2016-17, which were the first year of efiling of these forms, and also to condone such delay by invoking section 11(2)(b) of the Act. All the above provisions & circulars make it clear that non-filing or delay in filing the Form No. 10, there was no time limit prescribed under the Act for the present Asst. Year 2015-16. Following the Supreme Court judgments, if the Form No. 10 is filed before the assessing authority before completion of regular assessment, the assessee is eligible for the deduction. We find that in this case only an intimation under section 143(1) has been made rejecting the claim of deduction to the assessee. There is no regular assessment made for the A.Y. 2015-16. The assessee's rectification petition filed under section 154 of the Act is also rejected without considering insertion of sub-clause (c) in section 11(2) of the Act as well as CBDT Circular No. 7 of 2018. Thus, the ld.CIT(A) has not applied his mind while disposing of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the rectification application filed by the assessee. We further observe that the ld.CIT(A) even gone one step further by dismissing the appeal without considering Circulars issued by the CBDT, as well as Hon'ble Supreme Court's judgment and other High Courts' judgments placed by the assessee before the ld.CIT(A), NFAC. We further observe that in spite of Circular 14 of 1955, the Departmental Officers are taking advantage of the ignorance of the assessee, instead of assisting the taxpayers more particularly in the matter of claim of relief, issuance of refund, but the officers had not taken any initiative in guiding the taxpayers in accordance with law. This attitude will not give long term benefit to the department and discourage the confidence to the taxpayers. In simple words, when a litigant knocks the doors of the Temple of Justice, Justice to be rendered to his door steps itself and he should not be allowed to run from pillar to post for the Justice. 19. Thus, taking overall circumstances of the case, we quash the orders passed by the lower authorities, and delete the additions. Thus, the grounds of appeal raised by the assessee are hereby allowed. 8.1 Thus, r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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