In a recent case before  Income Tax Appellate Tribunal (ITAT), Bangalore the assessee’s appeal was allowed recognizing Medical Certificate as sufficient proof for condonation of taxpayer’s delay in filing of audit report. The appellant Home of Peoples Empowerment Foundation, filed an appeal against the impugned order of Income Tax Officer. The issue before the ITAT was whether the Commissioner of Income Tax (Appeals) (CITA) was correct in law in dismissing the appeal of the assessee without condoning the delay of 205 days.

The assessee’s counsel Advocate Arun Bhatt pointed out that the delay had occurred due to illness of the trustee who was advised for 2 to 3 months rest by the doctors. The CIT(A)  was not correct in discarding the submissions of the assessee’s condonation of delay. Get a Copy of Direct Taxes Law and Practices Including Tax Planning with Free E-Book Access, Click Here The assessee’s counsel had issued a medical certificate, and also the benefits of section 11 and 12 were denied to the assessee.

The ITAT bench comprising Accountant Member Waseem Ahmed and Judicial Member Prakash Chand Yadav observed that in view of the medical certificate document CIT(A) should have condoned the delay of 205 days.

The assessee was denied benefits under section 11 & 12, as the assessee failed to annex the Form No.10B. The assessee had filed a petition under Section 119(2)(b) of the Income Tax Act before the Central Board of Direct Taxes (CBDT) seeking condonation of delay in filing the Form No.10B. The CBDT had condoned the delay in filing Form No.10B and directed the Jurisdictional Assessing Officer (JAO) to consider the claim of the assessee. Get a Copy of Direct Taxes Law and Practices Including Tax Planning with Free E-Book Access, Click Here

The board directed the Assessing Officer to examine the claim of assessee as per direction of CBDT. Thus the appeal of assessee was allowed.