2024 (11) TMI 857 - AT - Income Tax

Denial of exemption u/s. 10(23C)(iiiab) - late filing of the income tax return i.e. beyond time specified u/s. 139(1) - also if the return is required to be mandatorily filed then whether, the filing of the return u/s. 139(4D) instead of section 139(4C) of the Act disentitles the assessee from claiming the exemption u/s. 10(23C)(iiiab) - HELD THAT - DR could not point out any relevant provision or section under the Income Tax Act which disentitles the assessee from claiming exemption u/s. 10(23C)(iiiab) of the Act for non-filing/late filing of the income tax return. Therefore, the action of the lower authorities in denying the exemption to the assessee on this ground is not sustainable. Second issue as to whether the filing of the return in wrong form i.e. Form u/s. 139(4D) instead of Form u/s. 139(4C) becomes irrelevant. Action of the lower authorities in denying exemption to the assessee cannot be held to be justified. The impugned order of the Ld. CIT(A) is set aside and the AO is directed to grant exemption to the assessee as claimed u/s. 10(23C)(iiiab) of the Act - Appeal of the assessee stands allowed.

Summary

The appeal was filed against the order of the Ld. CIT(A) denying exemption u/s. 10(23C)(iiiab) for late filing of income tax return. The Tribunal held that there is no provision to deny exemption for late filing and directed the AO to grant the exemption. The appeal of the assessee was allowed.