Commissioner of Income Tax, (Exemption), Hyderabad Sri Dattatreya Sai Ashram Trust, Bhubaneswar … v. …
Case Details
IN THE HIGH COURT OF ORISSA, AT CUTTACK ITA No. 18 of 2024 Commissioner of Income Tax, (Exemption), Hyderabad Sri Dattatreya Sai Ashram Trust, Bhubaneswar ….. Vs. ….. Appellant Mr. S.C. Mohanty, Sr. Standing Counsel (IT) Respondent CORAM:
Legal Reasoning
DR. JUSTICE B.R. SARANGI MR. JUSTICE G. SATAPATHY
Decision
ORDER 20.05.2024 Order No. 01. ITA No. 18 of 2024 and I.A. No. 20 of 2024 This matter is taken up through hybrid mode. 2. The Commissioner of Income Tax, (Exemption), Hyderabad being the appellant has filed this Income Tax Appeal seeking to set aside the order dated 20.07.2023 passed by the Income Tax Appellate Tribunal in ITA No. 40/CTK/2023 for the assessment year 2020-21, by which the appeal filed by the respondent against the order of the CIT (A), National Faceless Appeal Centre (NFAC) Delhi dated 29.12.2022 passed in ITBA/NFAC/S/250/2022- 23/1048342247 (1) for the assessment year 2020-2021 was allowed. 3. The factual matrix of the case in hand is that the respondent – assessee is a charitable trust and enjoys the benefit of registration u/s. 12AA of the Act. The assessee had filed its return of income for the relevant assessment year and the same came to be processed u/s. 143(1) of the Act, wherein the entire expenditure claimed by the assessee came to be disallowed and the exemption u/s.11 of the Act Page 1 of 4 was also disallowed. It was the submission of the assess that the reason for the same was that there were three days delay in filing of the audit report in Form 10B of the Audit. It was the further submission that for the assessment year 2020-2021, the due date of filing of the return was 15.02.2021 and the due date for filing the audit report in Form 10B was 15.01.2021. The assessee had filed his return of income on 03.02.2021 being before the due date of filing of return but the audit report was filed only on 18.01.2021 being three days after the due date. The CBDT vide its Circular No.6 of 2023, dated 24th May, 2023, in para 15 it has been stated as follows:- “15. It is clarified that the statement of accumulation in Form No. 10 and Form No. 9A is required to be furnished at least two months prior to the due date of furnishing return of income so that it may be taken into account while auditing the books of account. However, the accumulation/ deemed application shall not be denied to a trust as long as the statement of accumulation/ deemed application is furnished on or before the due date of furnishing the return as provided in sub-section (1) of section 139 of the Act.” 3.1 It was also the submission of the assessee that the Circular specifically provides that the statement of accumulation/deemed application should be furnished on or before the due date of furnishing the return as provided in sub-section (1) of section 139 of the Act. The apex Court in Suo Motu Petition (Civil) No.3 of 2020 had extended limitation from 15.03.2020 to 14.03.2021. Thus, the period of limitation for filing of the audit report fell within the time prescribed in the Circular issued by the CBDT and also the period of extension of the limitation as provided by the apex Court. Thus, the Assessing Officer may be directed to delete the disallowance as made by him. It was the further contended that the Notification issued by the CBDT dated 30.12.2020 in S.O.4805(E) has provided Page 2 of 4 for completion or compliance of the action by extending the time limits. Therefore, the audit report has been filed within the extended time limit, therefore, the disallowance as made in the intimation u/s. 143(1) of the Act is liable to be deleted. 3.2 Considering such fact, the Tribunal came to a definite conclusion that the audit report has been filed before the due date of filing of the return. The Circular No.6 of 2023, referred to above shows that it has been clarified that the statement of accumulation in form 10 and Form 9A required to be furnished at least two months prior to the due date of furnishing return of income so that it may be taken into account while auditing the books of account and this statement of accumulation in form 10 and form 9A is permitted to be furnished on or before the due date of furnishing of return as provided in sub-section 1 of Section 139 of the Act. If the details in form No.10 and Form 9A, the audit report would not be completed, automatically, the audit report in form 10B would also be permitted to be filed before the due date of furnishing of return as provided under sub-section 1 of Section 139 of the Act. 3.3 In the present case, the Form 10B has been filed before the due date of filing of the return under Section 139 (1) of the Act, therefore, the disallowance of the expenditure as made by the Assessing Officer in the intimation under Section 143 (1) of the Act stands deleted and accordingly, the Tribunal allowed the appeal filed by the assess. 4. This Court does not find any justification to interfere with the impugned order passed by the Tribunal. The question which has been formulated to be answered has nothing to do with the facts of the case. Thus, this Court is not inclined to entertain the Income Tax Appeal. More so, the present appeal has been filed at a delay of 143 Page 3 of 4 days. Therefore, applying the ratio decided by this Court in the case of State of Odisha and another v. Smt. Bishnupriya Routray and another, 118 (2014) CLT 588, this court is not inclined to condone the delay of 143 days. 5. In view of the above, the Income Tax Appeal stands dismissed both on the ground of delay as well as on merit. Arun JUDGE (DR. B.R. SARANGI) (G. SATAPATHY) JUDGE Signature Not Verified Digitally Signed Signed by: ARUN KUMAR MISHRA Designation: ADR-cum-Addl. Principal Secretary Reason: Authentication Location: High Court of Orissa Date: 21-May-2024 12:38:34 Page 4 of 4