PUNJAB MUNICIPAL INFRASTRUCTURE DEVELOPMENT COMPANY,CHANDIGARH V. DCIT EXEMPTION CIRCLE 1, CHANDIGARH, CHANDIGARH

ITA 593/CHANDI/2025

AI Insights

The case involves the Punjab Municipal Infrastructure Development Company, which appealed against the decision of the CIT(A) regarding the denial of the benefit of accumulation of funds for the Assessment Year 2016-17. The Assessing Officer had denied this benefit because the assessee did not e-file Form No.10 as required under the rules, despite having filed a manual form. The CIT(A) upheld the AO's decision, leading to the current appeal. The tribunal noted that the requirement for e-filing was only applicable from April 1, 2016, and since the form was filed manually before this date, it considered the possibility of a sympathetic view on the condonation application.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 840909 (ITAT-CHANDIGARH)
• Duration Of Justice: 10 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2016-2017
• Appeal Filed On: 22-04-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MEENAKSHI VOHRA LD
• Assessee Lawyers: NAVDEEP MONGA LD
• Keywords: Set aside
• Section: 143(3); 119(2)(b)

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHANDIGARH PHYSICAL HEARING BEFORE HON’BLE SHRI LALIET KUMAR, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं. / ITA No.593/CHANDI/2025 (िनधाŊरण वषŊ / Assessment Year: 2016-17) M/s Punjab Municipal Infrastructure Development Company Plot No. 3, 5th Floor Punjab Municipal Bhawan, Chandigarh - 160022 बनाम/ Vs. DCIT Exemption Circle 1, 5th Floor C. R. Building, Sector – 17E Chandigarh ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. AAFCP-8185-M (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Sh. Navdeep Monga (Advocate) – Ld. AR ŮȑथŎकीओरसे/Respondent by : Smt. Meenakshi Vohra (CIT) – Ld. DR सुनवाईकीतारीख/Date of Hearing : 25-02-2026 घोषणाकीतारीख /Date of Pronouncement : 25-02-2026 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2016-17 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 25-02-2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 143(3) of the Act on 26-11-2018. Having heard rival submissions, the appeal is disposed-off as under. Printed from counselvise.com 2 2. During assessment proceedings, it was noted by Ld. AO that the assessee accumulated / set apart funds exceeding 15% of the income. However, the assessee did not e-file Form No.10 as required u/s 11(2) r.w. Rule 17. The assessee stated that it filed manual Form on 17-10- 2016. However, since the form was not e-filed as required under extant rules, the benefit of accumulation was denied to the assessee. 3. The Ld. CIT(A), in para 5.1 noted that for such condonation / lapses, CBDT had issued Circular No.06/2020 on 19-02-2020 wherein ther assessee could seek condonation from appropriate authority u/s 119(2)(b) of the Act. The assessee did not seek any such condonation and therefore, the view of Ld. AO was endorsed. Aggrieved, the assessee is in further appeal before us. 4. The Ld. AR has stated that e-filing of this form was procedural in natural and a manual form was duly filed before culmination of assessment proceedings. It was further stated that the requirement of e-filing arose only w.e.f. 01-04-2016. Accordingly, Ld. AR sought condonation of the delay. 5. Undisputedly, extant rules mandate the assessee to file this form electronically to lay claim on the benefit of accumulation. If the prescribed procedure is not followed and the claim is allowed, the same would make the provisions redundant. Once condonation procedure has been established by CBDT in the stated circular, the assessee should follow the same. To enable the assessee to seek condonation before appropriate authority, we set aside the impugned order and restore the appeal back to the file of Ld. CIT(A) for fresh adjudication in Printed from counselvise.com 3 the light of outcome of condonation petition, if so advised to the assessee. It would be appreciated that a sympathetic view is taken by appropriate authority on the condonation application of the assessee since this is the first year of introduction of new rules. 6. The appeal stand allowed for statistical purposes. Order pronounced on 25th February, 2026. -Sd- -Sd- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER AS Dated: 25-02-2026 आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT CHANDIGARH Printed from counselvise.com "