05 January 2024 Income Tax >> Tax Laws  

The Bar Council of India (BCI) has secured a favorable verdict in a recent writ petition concerning a delay in filing Form 10. This form is crucial for claiming tax exemption on accumulated income under Section 11 of the Income Tax Act.

The case involved the BCI's income for the Assessment Year (AY) 2016-17. The Council, unaware of recent amendments to the Act, missed the deadline to file Form 10. Their application to condone the delay was initially rejected by the Commissioner of Income Tax (CIT).

BCI's Arguments:

The BCI challenged the CIT's decision, citing the following:

• Unintentional delay due to lack of awareness about the amendments.
• Similar delays for subsequent Assessment Years (AY 2017-18 & 2018-19) were condoned by the CIT themselves.
• CBDT circulars authorized Commissioners to consider genuine hardships for such delays.

Court's Ruling:

The court acknowledged the BCI's explanation for the delay and found it reasonable. They emphasized the absence of any motive behind the delay and highlighted the precedents set by the CIT condoning similar delays in later years.

Impact:

With the court's order, the BCI can now file the belated Form 10 for AY 2016-17. This paves the way for them to claim the tax exemption under Section 11, subject to further processing by the Income Tax department.

This case highlights the importance of staying informed about legal and tax-related updates. It also underscores the potential for leniency in genuine cases of delay, especially when considering established precedents.

  Income Tax Act, 1961