Making non-compliance an even costlier affair,
Bangalore ITAT recently dismissed an assessee’s appeal seeking the
rectification of disallowance by the CIT on grounds of non-furnishing of Form
10, of an amount set apart by the assessee.
As a brief background, Navodaya Education Trust
(assessee), registered under u/s 12A, had declared nil income for AY 2015-16
after setting apart INR 6.99 cr. for the purposes specified in Section 11. The
assessee, however, failed to submit Form 10 within the stipulated time, basis
which the revenue made an addition of INR 6.99 cr. in its return.
The assessee contented that although a manual copy of
the said form was not submitted, however, the requisite facility for its online
filing was also not available at the portal. The hon’ble ITAT, in response,
opined that “it is mandatory to file Form 10 manually though not electronically
before the due date of filing of return of income”.
Further pronounced that, the relevant CBDT circular
does not preclude the asseesee in filing form 10, but permits only its belated
electronic filing, on satisfaction of the Commissioner that the assessee was
prevented by reasonable cause in doing so within the stipulated time.
Hence, asseverated that, non-furnishing of Form 10 by
the Trust is not a rectifiable error u/s 154.
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