High Court Sets Aside Impugned Order, Condoning Delay in Filing Form 10: Mere Failure to Claim Accumulation Cannot Be Read as Intent Not to File
In a significant ruling, the Delhi High Court has overturned the decision of the Commissioner of Income Tax (Exemption), granting relief to the Bar Council of India by condoning the delay in filing Form 10 for the Assessment Year 2016-17.
The bench, comprising Hon’ble Mr. Justice Rajiv Shakdher and Hon’ble Mr. Justice Girish Kathpalia, delivered the judgment on January 5, 2024, after reserving their decision on December 13, 2023. The case revolved around the Bar Council of India’s plea for the quashing of an order passed by the Commissioner of Income Tax (Exemption) and for directions to accept Form No.10 with the condoned delay.
In their observations, the Court noted, “Mere failure to claim accumulation cannot be read as reasons to believe that the petitioner did not intend to file Form 10.” This statement was pivotal in the Court’s decision to set aside the impugned order, emphasizing the lack of sufficient grounds to assume a lack of intent to comply with the filing requirements.
The case highlighted the inadvertent oversight by the officials of the Bar Council of India, who failed to notice the amendments in the Income Tax Act and the corresponding rules. This led to a delay in filing Form 10, which the Court found to be a reasonable cause for the delay. The Court also drew parallels with similar condonations granted for the Assessment Years 2017-18 and 2018-19, reinforcing the principle of mitigating genuine hardships.
Date of Decision: January 05, 2024
BAR COUNCIL OF INDIA VS COMMISSIONER OF INCOME TAX (EXEMPTION)
