Vaishya Welfare Gaushala And Naturopathy Shiksha Society V. Union Of India and State Of Chhattisgarh and Central Board Of Indirect Taxes And Customs and Income Tax Department

WPT/154/2024

AI Insights

The case involves M/s Vaishya Welfare Gaushala And Naturopathy Shiksha Society, a non-profit organization, which filed a writ petition against multiple respondents including the Union of India and the Income Tax Department. The petitioner sought to reopen the online portal for submitting Form No. 10 AB under the Income Tax Act, 1961, due to technical glitches that prevented timely submission. The court considered the petitioner's grievances and the procedural guidelines set by the Ministry of Finance and the Central Board of Direct Taxes, particularly focusing on the circular that allows for condonation of delay in filing under certain circumstances.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 800570 (HC-CHHATTISGARH)
• Appeal Type: Others
• Pronouncement Date: 10-09-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act 1961, Society Registration Act, 1973
• Result in Favour of: Applicant
• Court: HIGH COURT
• Department Lawyers: RAMAKANT MISHRA; ANURAG TRIPATHI; AJAY KUMRANI
• Assessee Lawyers: PAWAN KESHARWANI
• Keywords: Grievance redressal; Income Tax Department; Technical glitches; Writ petition; Form Submission
• Section: 10AB

Judgement Text

"1 / 7 2024:CGHC:33938 NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR WPT No. 154 of 2024 M/s Vaishya Welfare Gaushala And Naturopathy Shiksha Society, Through Its Secretary, Office At Ward No.15, 4th Floor, National Corporation Park, Raipur (C.G.) 491001 ... Petitioner versus 1 - Union Of India Through Secretary, Department Of Revenue, Ministry Of Finance, North Block, New Delhi, Pin Code- 110001. 2 - State Of Chhattisgarh, Through Secretary, Department Of Finance, Government Of Chhattisgarh, Mantralaya, Mahanadi Bhawan, Atal Nagar, Nava Raipur, Raipur, District Raipur (C.G.) Pin Code 492002. 3 - Central Board Of Indirect Taxes And Customs, Through Its Chairman, Ministry Of Finance, Department Of Revenue, North Block New Delhi, Pin Code- 110001 4 - Income Tax Department, Through- Director Of Income Tax E-Filing Unit, Centralized Processing Centre, Income Tax Department, Bengaluru 560500 ... Respondents (Cause title taken from Case Information System) 2 / 7 For Petitioner : Mr. Pawan Kesharwani, Advocate For Respondent No.1 : Mr. Ramakant Mishra, Deputy Solicitor General For Respondent No.2/State : Mr. Anurag Tripathi, Panel Lawyer For Respondent No.4 : Mr. Ajay Kumrani, Advocate on behalf of Mr. Amit Choudhari, Advocate Hon'ble Shri Justice Ravindra Kumar Agrawal Order on Board 03/09/2024 1. The present writ petition has been filed by the petitioner claiming the following reliefs : “(i) May, this Hon'ble Court be pleased to call for the records of the case pertaining to the petitioner from the respondents for its kind perusal. (ii) May, this Hon'ble Court be pleased to allow the instant petition and direct the respondent authorities to reset/ reopen the portal filing the form No. 10AB under the Income Tax Act 1961 for the petitioner and in effect allow the petitioner to submit the form. (iii) That, any appropriate writ, direction or order may also kindly be passed in favour of the petitioner, which this Hon'ble court deems fit in the circumstances of the case.” 2. The brief facts of the case as emerges from the pleadings and documents of the writ petition that the petitioner, who is a society registered under the Society Registration Act, 1973, and is a Non- profit Government Organization (NGO), had applied for final registration of the society with the Income Tax Department by filling up the Form No. 10 AB of the Income Tax Act. The application in the 3 / 7 form of Form No. 10 AB is required to be submitted through online mode in the official web portal of the Income Tax Department. The last date for submission of the online Form No. 10 AB for assessment year of 2022-23 was 30.06.2024. When the petitioner was filling up his application form for final registration on 22.06.2024, due to some technical glitches in the web portal of the official website of the Income Tax Department, his Form No. 10 could not be successfully submitted with the Income Tax Department. Despite having repeated efforts made by the petitioner, they could not succeed in submitting their Form No. 10 AB with the department through online mode, even till the last date of submission of the application form. On 25.07.2024, the petitioner made his grievance through online mode through the official portal of Grievance Redressal Cell of the Income Tax Department vide Grievance Acknowledgment No. 17714466. While redressing the grievance raised by the petitioner, the department, vide its resolution dated 27.07.2024, directed the petitioner to contact the assessing officer for further queries in regard to registration of past years. Therefore, being aggrieved by the passive act of the respondent/department, the petitioner has filed the present writ petition. 3. On 13.08.2024 and 22.08.2024, the respondent No. 4 was granted time to file their reply, but they did not file their reply. On 02.09.2024 again, when the matter was listed for hearing, again the respondent No. 4 was granted time and directed to list the case on 03.09.2024, yet no reply has been filed by the respondent No. 4, therefore this Court constrained to proceed with the case. 4 / 7 4. Learned counsel for the respondent No. 4 would submit the last date for submission of Form No. 10 AB through online mode with the department was 30.09.2023, and by the notification dated 25.04.2024 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, vide Circular No. 7 of 2024, the last date for submission of Form No. 10 AB was extended up to 30.06.2024. The petitioner though tried to file his application on 22.06.2024, and even if due to some technical glitches, he could not succeed in submitting his application form, he should have immediately informed the authorities and tried to settle the dispute and to remove the technical glitches, which occurred in the process of submission of the application form by him, but he could have raised his grievance only on 25.07.2024, and thereby the petitioner himself was negligent in submitting his application form. He would also submit that considering the further difficulties of the petitioner, his grievances have been taken into consideration, and vide resolution dated 27.07.2024, he was requested to contact his assessing officer, so that he may properly advise him about the process of submission of his application form. Despite approaching the assessing officer, the petitioner has filed the present writ petition, in which no relief can be granted to him. 5. Learned counsel for the respondent No. 4 would also submit that the Government of India, Ministry of Finance, Department of Revenue, and Central Board of Direct Taxes vide its Circular No. 17/2022, dated 17.07.2022, authorized the Commissioner of Income Tax to admit applications of condonation of delay in filing Form No. 9A and 5 / 7 Form No. 10 for assessment year of 2018-19 or for any subsequent assessment years, where there is delay of up to 365 days and decide on merits, and thereby though the Commissioner of Income Tax (Exemption) has not been made as a party respondent, the petitioner has a remedy to approach before the Commissioner of Income Tax (Exemption) by filing appropriate application along with an application for condonation of delay, and then the authority is bound to consider his application under the Circular dated 17.07.2022. 6. Learned counsel for the petitioner would submit that instead of directing the authorities to accept the application form of the petitioner, the authorities have directed him to approach before the assessing authority and to file his application for condonation of delay, meaning thereby the authorities are not intended to decide the application of the petitioner on its merits, but they may decide their application on the ground of limitation. He would further submit that the authority may be directed to reopen the web portal of the official website of the Income Tax Department only for the limited purposes for filing of the online application by the petitioner, and thereafter the authorities may consider his application on its own merits. In alternative, he would further submit that if a direction is to be made to the Commissioner of Income Tax (Exemption) that he will accept the application form of the petitioner in physical mode and by treating it, as the same has been filed before the last date of submission of the application form, and to consider it on its own merits, then the grievances of the petitioner would be redressed. 6 / 7 7. Learned counsel for the respondent No. 1/Union of India would support the notification dated 17.07.2022 as well as 25.04.2024. 8. I have heard learned counsel for the parties and perused the documents annexed with the writ petition. 9. By the notification dated 17.07.2022, the Commissioner of Income Tax is authorized to admit application for condonation of delay in filing Form No. 9A and Form No. 10 for assessment year of 2018-19 or for any subsequent assessment years, where there is delay of up to 365 days and decide on merits. The grievance of the petitioner is that before the last date of submission of application Form No. 10 AB, due to some technical glitches he could not succeed in submitting his application form through online mode and his grievance is only to the extent of submission of his application Form No. 10 AB. In view of the circular dated 17.07.2022, the purpose would be subserved if the Commissioner of Income Tax is directed to accept the application Form No. 10 AB of the petitioner in physical mode treating the same is filed prior to the last date of submission of the application i.e. 30.06.2024 and to decide it on its own merits, considering the period of delay and reasons for delay, as the same has been explained by the petitioner that due to technical glitches he could not succeed in filing the application form. 10. Therefore, although the Commissioner of Income Tax (Exemption) has not been made a party respondent in the case, yet in the interest of justice, the petitioner is directed to submit his application Form No. 10-AB in physical mode to the Competent Authority/Commissioner of 7 / 7 Income Tax (Exemption) Bhopal along with an application as well as necessary documents under the circular dated 17.07.2022 within 03 weeks from today, then the Commissioner of Income Tax (Exemption) Bhopal is directed to consider the application of the petitioner treating it as filed before the last date of submission of application form i.e. 30.06.2024, and decide the application on its own merits in accordance with law, and Circular dated 17.07.2022. 11. With this observation, the petition is finally disposed of. Sd/- (Ravindra Kumar Agrawal) Judge ved VEDPRAKASH DEWANGAN Digitally signed by VEDPRAKASH DEWANGAN Date: 2024.09.10 17:25:00 +0530 "