The Andhra Pradesh High Court has stepped in to give fresh relief to a small religious society after its request for tax exemption was rejected due to a delay in filing an audit report. Hearing the matter on December 2, the court set aside the Income Tax Department’s rejection order and allowed the society another opportunity to explain its delay.
Background of the Case
The case was filed by Amnos Evangelical Fellowship, a religious society registered under the Income Tax Act. The fellowship runs a small church in Vijayawada and sustains itself through offerings collected during weekly and special prayer meetings.
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For the assessment year 2021–22, the society filed its audit report in Form 10-B with a delay of 44 days. Citing this delay, the Central Processing Centre of the Income Tax Department denied the fellowship exemption under Section 11 of the Income Tax Act and raised a tax demand of ₹5.68 lakh.
Seeking relief, the society approached the Commissioner of Income Tax (Exemptions) with an application to condone the delay. However, the request was rejected on May 27, 2023, mainly because certain documents sought by the department were not submitted in time. Aggrieved by this decision, the fellowship moved the High Court.
Counsel for the petitioner told the court that the society has been engaged in religious and charitable work for over 15 years and does not carry out any commercial activity. The delay, it was argued, occurred due to exceptional circumstances during the Covid-19 pandemic.
The petitioner also pointed out that the treasurer responsible for tax compliance is 78 years old and not well-versed with computers. Because of his age and the pandemic situation, he could not respond in time to the department’s letter seeking additional documents.
On the other hand, the Income Tax Department maintained that the rejection order was lawful. The department argued that since the requested documents were not furnished despite a formal communication, the authority had no option but to reject the condonation application.
Court’s Observations
After examining the records, the bench noted that the petitioner was involved in religious and charitable activities and that the reasons cited for the delay were not frivolous.
“The petitioner has explained that due to the Covid-19 pandemic and the advanced age of the treasurer, the documents could not be furnished within the stipulated time,” the bench observed.
The judges found that the rejection was based more on procedural lapses rather than an assessment of the explanation offered. They held that, in the interest of justice, the society deserved one more chance to submit the required documents.
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Decision
Allowing the writ petition, the High Court set aside the rejection order dated May 27, 2023. The court directed the petitioner to submit all the documents sought by the Income Tax Department within three weeks.
It further ordered that once the documents are submitted, the Commissioner of Income Tax (Exemptions) must reconsider the request for condonation of delay and pass a fresh order in accordance with law. The court made it clear that there would be no order as to costs.
Case Title: Amnos Evangelical Fellowship vs Income Tax Authorities
Case No.: W.P. No. 8798 of 2025
Case Type: Writ Petition (Tax Exemption)
Decision Date: 02 December 2025
