VIDYASAGAR ACADEMY, BARGARH V. COMMNR. OF INCOME TAX, TELENGANA

WP(C)/42921/2023

AI Insights

The case involves Vidyasagar Academy, Bargarh, the petitioner, who filed a writ petition against the Commissioner of Income Tax (Exemption), Hyderabad, challenging the rejection of their application for condonation of delay in filing Form-10B for the Assessment Year 2022-23. The petitioner argued that the rejection was unjust as they had provided sufficient reasons for the delay, which were not properly considered by the Commissioner. The court noted that the impugned order lacked reasoning and did not adhere to the principles of natural justice, leading to its decision to set aside the order and remand the matter for reconsideration.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 672418 (HC-ORISSA)
• Appeal Type: Others
• Pronouncement Date: 18-01-2024
• Assessment Year: misc
• Other Referred Cases: W.P.(C) No.22474 of 2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Applicant
• Court: HIGH COURT
• Department Lawyers: R CHIMANIKA
• Assessee Lawyers: A N RAY
• Keywords: Assessment year 2022-23; Condonation of delay; Form 10B; Natural Justice
• Section: 119(2)(b)

Judgement Text

" Page 1 of 3 IN THE HIGH COURT OF ORISSA AT CUTTACK W.P.(C). No. 42921 of 2023 Vidyasagar Academy, Bargarh ….. Petitioner Mr. A.N. Ray, Advocate Vs. Commissioner of Income Tax (Exemption), Hyderabad, Telengana ….. Opposite parties Mr. R. Chimanika, Sr. Standing Counsel, Income Tax Dept. CORAM: ACTING CHIEF JUSTICE DR. B.R. SARANGI MR. JUSTICE SIBO SANKAR MISHRA ORDER 18.01.2024 Order No. 01 This matter is taken up through hybrid mode. 2. Mr. A.N. Ray, learned counsel appearing for the Petitioner- assessee submits that the present writ petition may be disposed of in terms of the order dated 24.07.2023 passed in the similar matter i.e., W.P.(C) No.22474 of 2023. 3. Mr. A.N. Ray, learned counsel appearing on behalf of the petitioner further submits that the petitioner filed application for condonation of delay of late filing of Form-10B pertaining to the Assessment Year 2022-23. The application was rejected by the impugned order dated 15.11.2023. He prays to set aside the impugned order and direct the Opposite Parties-Revenue to accept the Form-10B. 4. Mr. Avinash Kedia, learned Junior Standing Counsel for the Opposite Parties-Revenue and justifies the impugned order by referring to the counter affidavit. 5. Perused the impugned order. On query from this Court, Mr. A.N. Ray, learned counsel appearing on behalf of the petitioner Page 2 of 3 Alok demonstrated that under cover of notice dated 05.10.2023 and 06.10.2023 under Annexure-5, certain requisitions were made on furnishing information. The petitioner by e-mail under Annexure- 6 furnished the information. The requisition and compliance were both digitally done. He then draws attention to impugned order to submit that there is no dispute regarding information received by opposite parties-Revenue. 6. For ready reference, first paragraph of the impugned order is reproduced hereunder:- “With reference to the assessee’s application for condonation of delay in filing Form 10B for the A.Y. 2020-21, cited under reference 1 above, it is to state that the assessee has filed Form 10B belatedly on 31.03.2021. The assessee has been requested to furnish certain information vide above cited reference 2, justifying its application for condonation of delay. However, the assessee has not submitted sufficient reason which prevented the assessee from filing the same, within the due date.” 7. In the requisition for information under Annexure-5, various information were sought for which also included query on reason for delay in filing Form-10B for Assessment Year 2022- 23. 8. Perusal of Annexure-6, e-mail, it appears that the Chairman of Vidyasagar Academy has furnished explanation citing reason for the delay in uploading the Form-10B and prayed for condonation. Though, the explanation is stated to have been furnished to the Commissioner of Income Tax (Exemption), Income Tax Department, Hyderbad, the same has not been considered in its proper prospective by assigning reason, which is one of the essential facets of principles of natural justice. Page 3 of 3 However, vide order dated 15.11.2023 passed by the CIT (Exemption), Hyderbad, the application of the Petitioner-Assessee for condonation of delay under Section 119(2)(b) of the Income Tax Act in filing Form-10B for the Assessment Year 2022-23 stood rejected. 9. In the circumstances, the order dated 15.11.2023 under Annexure-7, being without reason as is apparent from the record, stands set aside and it is directed that the application for condonation of delay is restored for reconsideration by the Commissioner of Income Tax (Exemption), Hyderbad. Needless to say that the said authority before taking decision may afford a reasonable opportunity of hearing to the assessee. 10. With the aforesaid observation and direction, the writ petition stands disposed of. (DR. B.R. SARANGI) ACTING CHIEF JUSTICE (S.S. MISHRA) JUDGE Digitally Signed Signed by: ALOK RANJAN SETHY Designation: A.R-cum-Sr. Secretary Reason: Authentication Location: ORISSA HIGH COURT Date: 19-Jan-2024 11:16:14 Signature Not Verified "