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TMI Blog1986 (10) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... t in O.P. Malhotra v. CIT [1981] 129 ITR 379." The assessment year involved is 1983-84 and the order brought in appeal is of 18-2-1986 passed by the AAC, Range ' T ', New Delhi, for which the assessment was made on 20-11-1985 under section 143(3) of the Income-tax Act, 1961 (' the Act '). 2. A return was filed on7-9-1983without audited accounts. Since the assessee was a trust case he was given an opportunity to explain as to why benefits of section 11 be not denied in view of the provisions of section 12A(b) of the Act. The assessee thereafter furnished another return on3-10-1985and also filed audited balance sheet and related accounts showing the date of audit as27-6-1984. The assessee referred to the judgment of the Hon'ble Allahabad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee's return being 7-9-1983 and since admittedly there was no audited balance sheet attached with such return, as required under section 12A(b), the respondent was rightly denied exemption under section 11. With regard to the revised return filed. He argued that the first return having been filed beyond the time allowed under section 139(1) and there being no notice under section 139(2), it had to be treated under section 139(4) and a return filed under such provision could not be revised under section 139(5) and, therefore, the assessee's action of filing an audited balance sheet along with return on 3-10-1985 could not save it from the mischief of denial of exemption. 5. For the respondent Shri M.S. Syali firstly submitted that return ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... feature that the return filed by a trust under sub-section (4A) is to be treated for all purposes under the Act a return filed under section 139(1), which certainly could be revised and since the audited balance sheet was submitted with the revised return, the infirmity, if any, got cured and the assessee was entitled to exemption under section 11. 7. Independent of the above, there was no merit in the ITO's objection that since the audit report in Form No. 10-B was not enclosed with the return on 7-9-1983, the assessee was out of the Court as far as the exemption claim was concerned. According to me, it is not the requirement of law that such audit report should be attached to the return and it would be sufficient compliance of the law i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) and (2) in which the assessee could have filed a return. The reference to section 271(1)(a) does not help because that section deals with the delay in the filing of the return beyond the period contemplated by section 139(1) or (2) and there can be no question of a delay under section 139(4). Section 139(3) (which permits the filing of a return of loss) and section 139(4A) (introduced subsequently) specifically provide that the returns filed under those sub-sections would attract all the provisions of the Act as if they were returns filed under sub-section (1) while sub-section (4) does not use any such language. It is, therefore, difficult to accept the argument that section 139(5) entities an assessee to rectify or revise a return filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the argument of Shri Verma that it would not be logical to hold that a person who has originally filed a return could revise it as many times as he likes before the assessment is made but that such an opportunity would not be available to a person who files his first return only under section 139(4)." 9. Therefore, whatever may be the reasons recorded by the learned AAC, his decision in directing exemption under section 11 is held to be justified on three separate counts, independent of each other summarised as follows : 1. Since the trust return was to be taken as under section 139(4A), by the statutory built in safeguards in the said sub-section the return was to be treated for all purposes as under section 139(1) and, therefore, co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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