Sri Vigneshwara Public Charitable Trust, Vs the Principal Chief Commissioner

SRI VIGNESHWARA PUBLIC CHARITABLE TRUST, A REGISTERED PUBLIC TRUST, TRUST DEED REGISTERED UNDER THE REGISTRATION ACT, 1908 REPRESENTED BY ITS TRUSTEE MR KARKALA MUKUNDA SHENOY SON OF KARKALA MOHANDAS SHENOY, AGED ABOUT 66 YEARS, NO. 3, 26TH MAIN ROAD, BTM LAYOUT, BANGALORE 560076 PAN AABTS3793H

¶10

…PETITIONER

¶11

(BY SRI. VENKATESH G., ADVOCATE)

¶12

AND:

¶13

Digitally signed by SHARADAVANI B Location: High Court of Karnataka

¶14

THE PRINCIPAL CHIEF COMMISSIONER OF INCOME-TAX,(EXEMPTION) ROOM NO. 2503, 25TH FLOOR, E2 BLOCK, CIVIC CENTRE, MINTO ROAD, NEW DELHI-110002

¶15

THE COMMISSIONER OF INCOME-TAX, (EXEMPTIONS), 6TH FLOOR, UNITY BUILDING ANNEXE, MISSION ROAD, BANGALORE - 560027

¶16

THE INCOME TAX OFFICER EXEMPTIONS WARD 2, 6TH FLOOR, UNITY BUILDING ANNEXE, MISSION ROAD, BANGALORE - 560027

¶17

2 -

¶18

NC: 2025:KHC:48194 WP No. 27399 of 2025

¶19

HC-KAR

¶20

THE ASSISTANT DIRECTOR OF INCOME TAX, CENTRALISED PROCESSING CENTRE, PRESTIGE ALPHA, NO. 48/1 48/2, BERATENAGRAHARA, BEGUR HOBLI, HOSUR ROAD, BENGALURU 560 500

¶21

…RESPONDENTS

¶22

(BY SRI ARAVIND V. CHAVAN, ADVOCATE)

¶23

THIS WRIT PETITION UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA IS FILED PRAYING TO QUASHING THE ORDER UNDER SECTION 119(2)(B) OF THE INCOME TAX ACT, 1961 (FOR SHORT THE ACT) DATED 11.12.2024 PASSED BY THE RESPONDENT NO.1 FOR THE ASSESSMENT YEAR 2020-21 BEARING DIN AND ORDER NO. ITBA/COM/F/17/2024-25/1071116222(1) ENCLOSED AND MARKED AS ANNEXURE-A;

¶24

THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

¶25

CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

¶26

ORAL ORDER

¶27

In this petition, petitioner seeks the following reliefs:

¶28

"Wherefore it is prayed that this Hon'ble Court be pleased to:

¶29

i) Issue a writ of certiorari or a direction in the nature of writ of certiorari quashing the order under section 119(2)(b) of the Income Tax Act, 1961 (for short 'the Act') dated 11.12.2024 passed by the Respondent No.1 for the assessment year 2020-21 bearing DIN &Order No. ITBA/COM/F/17/202425/1071116222(1) enclosed and marked as Annexure-A.

¶30

ii) Issue a writ of mandamus or a direction in the nature of writ of mandamus directing the Respondent No.1 to condone the delay in filing of audit report in

¶31

3 - NC: 2025:KHC:48194 WP No. 27399 of 2025

¶32

HC-KAR

¶33

e-Form 10B bearing e-filing Acknowledgement Number 500078860031123 for the assessment year 2020-21 which is enclosed herewith and marked as Annexure-B.

¶34

iii) Issue a writ of certiorari or a direction in the nature of writ of certiorari quashing the intimation dated 30.11.2021 issued under section 143(1) of the Act for the assessment year 2020-21 bearing DIN: CPC/2021/A7/164872697 issued by the Respondent No. 4, which is enclosed herewith and marked as Annexure-C.

¶35

iv) And pass or any other appropriate Writ, Order or direction as this Hon'ble Court deems fit and proper in the interest of justice and equity."

¶36

A perusal of the material on record indicate that

¶37

the petitioner is a Charitable and religious Trust and submitted its income tax returns for the assessment year 2020-21 on 12.01.2021. The said returns having been processed, the respondents issued an Intimation to the Petitioner under section 143(1) of the Income Tax Act hereinafter referred to as the 'IT Act' wherein benefit of exemption under Section 11 of the IT Act was not granted to the petitioner. Pursuant to the said denial of exemption under section 11 of the IT Act the Petitioner realized that the audit report in Form-10B applicable to the petitioner-

¶38

4 - NC: 2025:KHC:48194 WP No. 27399 of 2025

¶39

HC-KAR

¶40

Trust had not been submitted along with the income tax returns. Pursuant to the said realization, the petitioner submitted the said audit report in Form-10B along with an application on 09.02.2024 invoking Section 119(2)(b) of the I.T. Act seeking condonation of delay in submitting the said audit report. It was contended that the inability and omission on the part of the petitioner to submit the said audit report along with the income tax returns was due to bonafide reasons, unavoidable circumstances and sufficient cause, since the same was not filed by oversight. The said application was considered by the respondent, who declined to condone the delay and accordingly, passed the impugned order dated 11.12.2024, rejecting the application for condonation of delay, aggrieved by which the petitioner is before this Court by way of the present petition.

¶41

5 - NC: 2025:KHC:48194 WP No. 27399 of 2025

¶42

HC-KAR

¶43

Per contra, learned counsel for the respondents submits that there is no merit in the petition and the same is liable to be dismissed.

¶44

A perusal of the material on record will indicate that it is an undisputed fact that the petitioner is a Public Charitable and Religious Trust carrying on charitable and religious activities. It is also not in dispute that the petitioner had submitted its income tax returns within the prescribed period i.e., on 20.09.2018 as a Trust. Under these circumstances, in the light of the specific assertion on the part of the petitioner that its inability and omission to submit the audit report in From-10B along with its income tax returns was due to bonafide reasons, unavoidable circumstances and sufficient cause, I am of the view that the petitioner had demonstrated and established genuine hardship and circumstances beyond its control, which prevented it from submitting the audit report along with the I.T. returns. Under these circumstances, the impugned order, which proceeds on a

¶45

6 - NC: 2025:KHC:48194 WP No. 27399 of 2025

¶46

HC-KAR

¶47

hyper technical approach deserves to be set aside and by adopting a justice oriented approach, in the light of the undisputed fact that the petitioner is Religious and Charitable Trust, it would be just, proper and expedient to set aside the impugned order and allow the application filed by the petitioner for condonation of delay and issue further directions in this regard.

¶48

In the result, the following order is passed:

¶49

ORDER

¶50

(i) Petition is hereby allowed;

¶51

(ii) The impugned order at Annexure-A dated 11.12.2024, passed by respondent No.1, is hereby set aside;

¶52

(iii) The application filed by the petitioner under

¶53

section 119(2)(b) dated 09.02.2024 is hereby allowed and the delay on the part of the petitioner in submitting the audit report in Form-10B is hereby condoned;

¶54