Delayed in filing application for grant of Sec. 10(23C) exemption cannot be condoned by CIT(E): Bombay HC

  • Income Tax
  • High Court
  • Supreme Court

Assessee filed an application in Form No. 56D for availing exemption under Section 10(23C)(vi). The assessment explained that due to a certain exceptional situation, there was a delay in the completion of the audit of the accounts which caused a delay in filing the application. Commissioner [CIT(E)] passed a notice informing assessee that application filed by it was not within the prescribed time limit. Consequently, an application filed by the assessee was rejected on the grounds that the application was filed beyond the prescribed time limit and CIT(E) had no jurisdiction to condone the delay in the fling of such delayed application.  

Assessee contended that CBDT vide Circular No.19/2020 dated 3-11-2020, had delegated delay power to CIT (E).On writ, Bombay High Court held that CIT(E) have been authorized by the CBDT to admit applications for condonation of delay in fling Form No. 10BB, i.e. Review report. 

Neither of the two i.e. the order dated 27-9-2019 and the Circular dated 3-11-2020 deal with an application for exemption under section 10(23C)(vi) in Form No. 56D which has a definite time line. Moreover, there was no provision for extending the time limit if such a power was available with the CBDT. 

Since, there was no provision for extension of the limitation period or for condonation of delay in fling the application for grant of exemption under section 10(23C)(vi) by CIT(E), CIT(E) was in rejecting the application filed by assessee.