M/S THE DON BOSCO SOCIETY FOR V. THE COMMISSIONER OF

WP/19858/2019

AI Insights

The case involves M/s The Don Bosco Society for Higher Education, represented by its administrator Joaquim Lobo, who filed a writ petition against the Commissioner of Income Tax (Exemption). The petitioner sought to quash an order that rejected their application for condonation of delay in filing Form 10 for the assessment year 2016-17. The rejection was based on the grounds that the return for the relevant assessment year was not filed within the stipulated time, referencing CBDT Circular No.6/2020 which stated that Commissioners are not authorized to condone delays in filing returns as specified under Section 139(1) of the IT Act. The petitioner argued that the delay should be considered under Section 139(4), as amended by the Finance Act, 2016. The court found that the respondent had erred in rejecting the application without considering the provisions of Section 139(4) and the relevant circulars that allow for such condonation under specific circumstances.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 742668 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 20-01-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Income Tax Rules, 1962
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP; K V ARAVIND
• Assessee Lawyers: JINITA CHATTERJEE; S PARTHASARATHI
• Keywords: Assessment Year 2016-17; Condonation of delay; Filing of Form 10; CBDT Circular No.6/2020
• Section: 139(1); 139(4); 119(2)(b); 226; 227

Judgement Text

" - 1 - WP No. 19858 of 2019 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20TH DAY OF JANUARY, 2023 BEFORE THE HON'BLE MR JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 19858 OF 2019 (T-IT) BETWEEN: M/S THE DON BOSCO SOCIETY FOR HIGHER EDUCATION PANJIM, DON BOSCO, M.G.ROAD, MUNICIPAL MARKET, PANJIM-GOA-403001 REPRESENTED BY ITS ADMINISTRATOR, JOAQUIM LOBO, AGED ABOUT 48 YEARS, S/O MR ANTONIO JOAO LOBO. …PETITIONER (BY SMT.JINITA CHATTERJEE, ADVOCATE SRI. S PARTHASARATHI., ADVOCATE) AND: THE COMMISSIONER OF INCOME TAX (EXEMPTION) 6TH FLOOR, UNITY BUILDING ANNEXE, P KALINGA ROAD,. BENGALURU-560027. …RESPONDENT (BY SRI.M. DILIP., ADVOCATE FOR SRI. K.V. ARAVIND, ADVOCATE) Digitally signed by NARASIMHA MURTHY VANAMALA Location: HIGH COURT OF KARNATAKA - 2 - WP No. 19858 of 2019 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER OF THE RESPONDENT DATED 21.12.2018 FOR THE ASSESSMENT YEAR 2016-17 (ANNEXURE-E) DIRECT THE RESPONDENT TO ALLOW THE APPLICATION DATED 12.06.2017 FILED ON 15.06.2017 U/S 119(2) (b) OF THE ACT (ANNEXURE-A) GRANTING CONDONATION OF DELAY IN FILING OF FORM NO.10 FOR THE ASSESSMENT YEAR 20-16-17. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER The petitioner has impugned the respondent’s order dated 21.12.2018 in File No.86/CIT(E)/Form- 10/2018-19 for the assessment year 2016-17 under Section 119(2)(b) of the Income Tax Act, 1961 (for short, ‘the IT Act’) read with Rule 17 of the Income Tax Rules, 1962 (for short, ‘IT Rules’). The respondent by this impugned order has rejected the petitioner’s application for condonation of delay in filing Form 10 on the ground that return for the relevant assessment year is not filed within time and in terms of the CBDT Circular No.6/2020 dated 19.02.2020, a - 3 - WP No. 19858 of 2019 Commissioner is not vested with jurisdiction to condone the delay in filing the returns as specified under Section 139(1) of the IT Act. 2. Ms. Jinita Chatterjee, the learned counsel for the petitioner, submits that the petitioner has indeed filed Form 10 belatedly on 17.10.2016 and returns as well on 25.11.2016, and the returns are belated by 39 days. However, question of delay in filing Form 10 ought to be considered not just in the light of the provisions of Section 139(1) but also the provisions of Section 139(4) as amended by the Finance Act, 2016 and applicable for the subject assessment years. However, Sri M.Dilip, the learned counsel who appears on behalf of Sri K.V.Aravind who is on record for the respondent, submits that question of condonation of delay in filing Form 10 and the delay in filing the returns ought to be considered in the light of the Circular No.6/2020. - 4 - WP No. 19858 of 2019 3. Sri M.Dilip draws the attention of this Court to the paragraph 2 of the Circular dated 19.02.2020, which read as under: “Accordingly, in continuation of earlier Circulars issued in this regard, with the view to prevent hardship to the assessee and in exercise of powers conferred under Section 119(2)(b) of the Act, the CBDT has decided that where the application for condonation of delay in filing Form 9A and Form 10 has been filed, and the Return of Income has been filed on or before 31st March of the respective assessment years i.e. Assessment Years 2016-17, 2017-18 and 2018-19, the Commissioners of Income-tax (Exemptions) are authorized u/s. 119(2)(b) of the Act, to admit such belated applications for condonation of delay in filing Return of Income and decided on merits.” 4. This Court must opine that with the afore clarification it remains salient that the respondent could not have rejected the application for condoning - 5 - WP No. 19858 of 2019 the delay in filing Form 10 on the ground that there is no authorization, and the question of condonation of delay must be considered in the light of the afore and further circulars that may have been issued in this regard. As such, the impugned order must be quashed, and the proceedings restored for reconsideration by the respondent as aforesaid. Hence, the following: ORDER The petition is allowed, and the impugned order dated 21.12.2018 in No. 86/CIT(E)/Form-10/2018-19 is quashed restoring the petitioner’s application for condonation of delay in filing Form 10 to be considered in the light of the Circular No.6/2020 dated 19.02.2020 and the further circulars that may be issued in that regard. The petitioner, without further - 6 - WP No. 19858 of 2019 notice, shall appear before the respondent on 27.02.2023 Sd/- JUDGE SA ct:sr "