The requirement of filing tax-related documents within statutory timelines is mandatory and cannot be relaxed without adequate justification.

ORDER

The Petitioner is before this Court against the Order dated

25.12.2024 passed by the Respondent Commissioner of Income Tax (Exemptions) whereby the Petitioner’s application for condonation of delay in filing Form 10B dated 15.03.2024 has been rejected for the Assessment Year 2023-2024. Operative portion of the impugned Order reads as under:-

“6. Decision: I have carefully examined the facts of the case and the submissions of the assessee. Further, the CBDT vide Circular No.2/2020, dated 03-

01-2020 in para 5 & 6 has directed as under:

“it has also been decided by the CBDT that where there is delay of upto 365 days in filing Form No.10B for the Assessment Year 2018-19 or for any subsequent Assessment Years, the Commissioners of Income Tax are hereby authorized to admit such belated applications of condonation of delay u/s 119(2) of the IT Act and decide on merits. The Commissioner of Income Tax shall, while entertaining such belated applications in filing Form No.10B, satisfy themselves that the assessee was prevented by reasonable cause from filing such application within the stipulated time.”

6.1. It is important to note that the applicant must prove that there exists reasonable cause which prevented them from filing of Form 10B within the stipulated time. The reason for the delay submitted by the assessee was that due to the managing trustee was unavailable and could not coordinate with the accounting staff and unable to produce books of account for auditing. Further it was stated that trustees were preoccupied with the visit of the foreign donors. This contention of the assessee cannot be accepted, when the assessee was able to file the Return of Income within the due date u/s 139(4A) on 10.11.2023 which was prepared after finalization of books of accounts, it is not known what prevented the assessee from filing Form 10B within the due date. If the assessee’s managing trustee had not been in a position to file the Form 10B for the Assessment Year 2022-23, the same would have prevented him from filing the return for the impugned assessment year.

6.2. Further, it is seen that the assessee has sought for condonation of the delay in filing Form 10B for the original Form 10B which was filed on 10.11.2023. But it is seen that the assessee has filed revised Form 10B on 08.01.2024 for which it has not given any reason / explanation. The assessee has claimed that its main source of income is from foreign donors, which means it is expected to be more vigilant in adhering to the statutory timelines.

6.3. The reasons stated by the assessee are not cogent and the assessee has not established any reasonable cause for the delay in filing Revised Form 10B for the Assessment Year 2023-24. The statutory compliances has to be duly complied with and the assessee should have ensured that adequate steps are taken, so that the law is complied with well within time. The same had to be looked after or adequately managed by the management of the Trust or Chartered Accountants who has been made responsible for statutory compliances.

6.4. The assessee in its petition relied on the case law CIT Vs. Hardoedas Agarwalla in which it was held that filing of audit report along with return is not mandatory but is directory. In this connection, it is relevant to note that the Apex Court recently in the case of Wipro Ltd held that the requirement of filing a declaration within a timeline is “mandatory” in nature as per the language of the provision. It reiterated the age- old principle that a taxing statute should be read as it is and held that the exemption / deduction provisions should be “strictly” and “literally” complied with and, therefore, a strict interpretation should be adopted. This principle is applicable in the assessee’s case for filing of Form 10B.

7. In view of the facts and circum