APHC010210502024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3529] TUESDAY, THE TWENTIETH DAY OF JANUARY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR WRIT PETITION NO: 10637/2024 Between: 1. SRI GOPALA SWAMY EDUCATIONALSOCIETY SIDDAVATAM, SIDDAVATAM MANUAL KADAPA 516237,ANDHRA PRADESH INDIA, REPRESENTED BY ITS SECRETARY, SMT. T. SARASWATHAMMA, W/O. B. GOPALASWAMY, AGED ABOUT 77 YEARS, R/O. SIDDAVATHAM, KADAPA ...PETITIONER AND 1. THE COMMISSIONER OF INCOME TAX EXEMPTIONS HYDERABAD, AAYKARBHAVAN, 2ND FLOOR, ANNEXE BUILDING, BASHEERBAGH, HYDERABAD 2. THE INCOME TAX OFFICER, EXEMPTONS, TIRUPATHI, ANDHRA PRADESH ...RESPONDENT(S): Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased tomay be pleased to issue a writ or order or direction, more particularly in the nature of a writ of mandamus declaring the order dated 17- 11- 2023 passed by the Respondent No. 1 bearing DIN and Notice No. ITBA/COM/F/17/2023-24/1058040495(1) rejecting the application of the Petitioner for delay in filing Form No. lOB for the Assessment Year 2020-21 as being void, illegal, arbitrary, violative of Article 14 of the Constitution of 2 RRR,J & TCDS,J W.P.No.10637 of 2024 India, without application of mind and violative of principles of natural justice and consequently condone the delay and direct the Respondent No. 1 to accept the Form No. lOB filed by the Petitioner and pass IA NO: 1 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased may be pleased to stay any demand raised as a consequence of non acceptance of Form No. 10B for the Assessment Year 2020-21 and pass IA NO: 1 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased ,may be pleased to Grant leave to the Respondents to file the counter affidavit in W.P. No. 10637 of 2024 by condoning the delay in the interest of justice and also direct that the said counter affidavit be taken on record and or Pass Counsel for the Petitioner: 1. M NAGA DEEPAK Counsel for the Respondent(S): 1. . 2. Y N VIVEKANANDA 3 RRR,J & TCDS,J W.P.No.10637 of 2024 The Court made the following Order: (per Hon’ble Sri Justice R. Raghunandan Rao) The petitioner is registered as a Charitable Institution, under the provisions of the Income Tax Act. Such institutions or organizations are entitled to exemption from payment of Income Tax, subject to such institutions complying with the requirements of the Income Tax Act read with the Rules. One such requirement was the filing of a Form 10B, along with an Audit Report, certifying the character of the institution to be that of a Charitable Institution. 2. For the assessment year, 2020-2021, the due date for filing of such Audit Report as well as Form 10B was 15.01.2021. However, the petitioner was able to file the income tax returns as well as Form 10B, only on 31.03.2021. Thereafter, the petitioner was called upon by the 2nd respondent to pay income tax, on the income of the petitioner. The petitioner, had thereupon, approached the 2nd respondent and informed the 2nd respondent that, the income of the petitioner was exempted from payment of tax as Form 10B, had already been filed by the petitioner, for the assessment year, 2020-2021. However, the 2nd respondent stated that, the Form 10B, had not been accepted in view of the delay in filing of the said Form. At that stage, the petitioner, moved an application for condonation of delay, in filing Form 10B, for the assessment year, 2020-2021. 3. The case of the petitioner was that, the Circular bearing No.2/2020, dated 03.01.2020, issued by the Central Board of Direct Taxes, permitted 4 RRR,J & TCDS,J W.P.No.10637 of 2024 Commissioners of Income Tax to accept the belated applications, after condoning the delay in filing of such applications as well as Form 10B, for any assessment year, after 2018-2019. It may also be noted that, this Circular specifically states that, the Commissioners of Income Tax were required to satisfy themselves that, the assessee was prevented from filling such applications within the stipulated time. 4. The 1st respondent rejected the said application of the petitioner, by way of an Order, dated 17.11.2023. 5. Aggrieved by the said order of rejection, the petitioner has approached this Court, by way of the present Writ Petition, for setting aside the said order of rejection and for a consequent condonation of delay, whereby the 1st respondent can be directed to accept the Form 10B, filed by the petitioner. 6. Sri M. Naga Deepak, learned counsel appearing for the petitioner, would rely upon a judgment of the Hon’ble High Court of Gujarat at Ahmedabad, in the case of Sarvodaya Charitable Trust Vs. Income Tax Officer (Exemption)1 and the judgment of the Hon’ble High Court of Bombay in the case of Al Jamia Mohammediyah Education Society Vs. Commissioner Of Income Tax (Exemptions) Mumbai, Union of India2. The learned counsel would also rely upon the Orders of the Hon’ble Supreme Court, dated 18.07.2025, in Special Leave Petition (Civil) Diary No.32121 of 1 [2021] 278 TAXMAN 148 (Guj) 2 [2025] 482 ITR 41 (Bom) 5 RRR,J & TCDS,J W.P.No.10637 of 2024 2025, wherein the S.L.P. filed against the judgment of the Hon’ble High Court of Bombay, had been dismissed. 7. Sri Y. N. Vivekananda, learned Standing Counsel for Income Tax, appearing for the respondents, while reiterating the ground raised in the counter-affidavit, would submit that, the rejection of Form 10B was in accordance with Law in as much as no application for condonation of delay was filed, along with the said Form 10B. Learned Standing Counsel would also submit that, the application for condonation of delay came to be filed only, in the year, 2023, which is about two (02) years, after the filing of the Form 10B. 8. The application filed by the petitioner for condonation of delay states that, there was a delay of 77 days in filing Form 10B, on account of the advent of the COVID – 19 Pandemic, and on account of the Chartered Accountant of the petitioner being unable to prepare the necessary Audit Report. It was also mentioned that, the said Chartered Accountant, had also passed away due to complications arising out of a COVID – 19 Pandemic. 9. The 1st respondent rejected the application for condonation of delay without giving any reasons. A perusal of the order of rejection, would show that, the 1st respondent had simply stated that, the reasons given by the petitioner were not sufficient. This cryptic ground, does not meet the requirements of Principles of Natural Justice in as much as such an order, would require the reasons would be given in writing. In the absence of such 6 RRR,J & TCDS,J W.P.No.10637 of 2024 reasons, the order would have to be treated to be passed in violation of the Principles of Natural Justice and would have to be set aside. 10. The learned counsel for the petitioner, would contend that, this Court can also go into the question of condonation of delay in view of the judgments cited above. 11. In the case of Sarvodaya Charitable Trust Vs. Income Tax Officer (Exemption), the Form 10B filed by the petitioner, in that case, was rejected, on account of the Trust, failing to confirm the Audit Report filed, along with the Form 10B . Thereafter, an assessment came to be passed, rejecting the benefit of exemption to the petitioner therein. Aggrieved by the same, the petitioner had approached the Hon’ble High Court of Gujarat, by way of a Writ Petition. The Hon’ble High Court, after considering the various contentions, raised by both sides, relying upon the Circular No.10/2019, dated 22.05.2019, issued by the Central Board of Direct Taxes, had held that, the requirement of furnishing the Audit Report should be treated as a procedural proviso. It is directory in nature and its substantial compliance would suffice. The High Court had also held that, the condonation application by an assessee, which is a Public Charitable Trust, for the past 30 years, cannot be rejected, on the ground of limitation, when wide discretionary powers for condonation had been given, on that basis. The Hon’ble High Court not only set aside the order of rejection but also condoned the delay in filing of Form 10B. A Division Bench of the Hon’ble High Court of Bombay, in the case of Al Jamia 7 RRR,J & TCDS,J W.P.No.10637 of 2024 Mohammediyah Education Society Vs. Commissioner Of Income Tax (Exemptions) Mumbai, Union of India, followed this judgment and condoned the delay in the filing of the Form 10B by the petitioner, in that case. The S.L.P. filed against this judgment of the Hon’ble High Court of Bombay, came to be dismissed. In that view of the matter, this Court can go into the question of the condonation of delay in the filing of the Form 10B by the petitioner herein. 12. In the application filed for condonation of delay, the petitioner had specifically referred to the directions of the Hon’ble Supreme Court, in Civil Appeal No.3 of 2022, reported in (2022) 134 TAXMAN.COM 307 (SC). The Hon’ble Supreme Court, by virtue of these Orders, had directed that, the period from 15.03.2020 till 20.08.2022, shall be excluded for the purpose of limitation in judicial and Quasi judicial proceedings. 13. In such circumstances, the period between 15.01.2021 till 31.03.2021, would stand excluded for the purposes of calculating limitation. Apart from this, there is no dispute that the Chartered Accountant of the petitioner, had passed away due to COVID – 19 Pandemic complications. In those circumstances, there is every need for condonation of delay in the filing of Form 10B, by the petitioner. 14. Accordingly, this Writ Petition is allowed, setting aside the order of the 1st respondent, dated 17.11.2023, with a further direction to the 1st respondent 8 RRR,J & TCDS,J W.P.No.10637 of 2024 to accept Form 10B filed by the petitioner without reference to the delay in filing of the said Form 10B. There shall be no order as to costs. As a sequel, pending miscellaneous applications, if any, shall stand closed. ________________________ R. RAGHUNANDAN RAO, J ________________ T.C.D. SEKHAR, J Date:20.01.2026 KPV 9 RRR,J & TCDS,J W.P.No.10637 of 2024 172 THE HON’BLE SRI JUSTICE R. RAGHUNANDAN RAO AND THE HON'BLE SRI JUSTICE T.C.D.SEKHAR WRIT PETITION No.10637 of 2024 (per Hon’ble Sri Justice R. Raghunandan Rao) 20.01.2026 KPV