Condonation petition for belated filing of Form No.10 under the Income Tax Act

Last updated: 02 October 2021

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A charitable trust failed to file Form 10 for fund accumulation when filing its income tax return, leading the Assessing Officer to tax Rs. 15,15,080. The trust subsequently applied for condonation of the delay in filing Form 10. The Tribunal, referencing Board Circular No. 273, restored the issue to the Assessing Officer, allowing the trust's appeal for statistical purposes.

Court :
ITAT Bangalore

Brief :
This appeal at the instance of the assessee is directed against the CIT(A)�s order dated 31.08.2020. The relevant assessment year is 2016-2017.

Citation :
ITA No.718/Bang/2020 : Asst.Year 2016-2017

IN THE INCOME TAX APPELLATE TRIBUNAL
BANGALORE “SMC-C” BENCH, BANGALORE
Before Shri George George K, Judicial Member
ITA No.718/Bang/2020 : Asst.Year 2016-2017

M/s.KRS Education Rural
Development Trust,
No.800, 5th Main, 7th Cross,
MC Layout, Vijayanagar
Bangalore – 560 032.
PAN : AAATK5404G.

The Income Tax Officer
(Exemption) Ward - 1
Bangalore.

Appellant by : Sri.Ravishankar, Advocate
Respondent by : Sri.Ganesh R.Ghale, Standing Counsel
Date of Hearing : 17.09.2021
Date of Pronouncement : 20.09.2021

O R D E R

The assessee is a registered charitable trust. For the assessment year 2016-2017, the return of income was filed on 08.11.2017 declaring NIL income. The assessment was selected for scrutiny by issuance of statutory notice u/s 143(2) of the I.T.Act. During the course of assessment proceedings, the Assessing Officer noted that the assessee has not filed Form No.10 for accumulation of funds while filing the return of income. Accordingly, the Assessing Officer brought a sum of Rs.15,15,080 to tax vide order dated 25.12.2018.

2. The learned Standing Counsel relied on the order of the Bangalore Bench of the Tribunal in the case of M/s.Navodaya Education Trust v. DCIT in ITA No.49/Bang/2021 (order dated 15.07.2021).

3. I have heard rival submissions and perused the material on record. As per Board Circular No.273 dated 03.06.1980, the assessee can file application for condonation of delay for submission of Form No.10 by specifying certain conditions. The assessee has filed such an application before the CIT (Exemption) and the same is pending. The copy of the application for condonation of delay in filing Form No.10 is placed on record. In such circumstances, I deem it fit to restore the issue to the files of the A.O.

4. In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on this 20th day of September, 2021.

Please find attached the enclosed file for the full judgement

FAQ :

Form No. 10 is a form related to the accumulation of funds by a trust, which needs to be filed with the income tax return.

The trust's income was taxed because it failed to file Form No. 10 for the accumulation of funds along with its income tax return for the assessment year 2016-2017.

The trust filed an application for condonation of the delay in submitting Form No. 10 with the CIT (Exemption).

The Income Tax Appellate Tribunal allowed the appeal for statistical purposes and restored the issue to the Assessing Officer, considering the pending condonation application.