9911796707
TMI Blog2019 (10) TMI 899X X X X Extracts X X X X X X X X Extracts X X X X ..... as not familiar with the relevant provisions of filing of return of income and the procedure involved thereof. It was under a bona fide belief that the return is to be filed only after securing recognition under section 80G. However, on being appraised of the provisions of law, return was filed without any further delay. Since the entire income was applied towards the charitable activities, no tax was payable for the relevant assessment year. As a result of late filing of the return, there was no loss of revenue to the Government. The assessee had no ulterior motive to defraud the revenue and had not acted dishonestly or negligently. We also agree with the submission of the learned counsel for assessee that the provisions of section 139( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of sections 11 and 12 of the Act. The abovesaid provisions read as follows: 139(4A) Every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes, or of income being voluntary contributions referred to in sub-clause (iia) of clause (24) of section 2, shall, if the total income in respect of which he is assessable as a representative assessee (the total income for this purpose being computed under this Act without giving effect to the provisions of sections 11 and 12) exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year in the prescribed for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income was filed immediately. It was also pleaded that there was no tax liability and that the assessee was primary and pre-university education for students in rural area. The above plea for reasonable cause was not accepted by the revenue authorities and hence the assessee is in appeal before us. 4. We head the rival submissions. The learned counsel for assessee placed reliance on the decision of the Bengaluru Bench of Tribunal in the case of HTSL Community Service Trust Vs. JDIT(Exemptions) (2012) 52 SOT 144 (Bangalore)(URO) wherein on identical reason, penalty-imposed u/s 272(A)(2)(e) was deleted by the Tribunal. The following were the relevant observations of the Tribunal: In the instant case, the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reasons assigned in the case decided by the Tribunal and referred to above. Following the ratio laid down therein, we are of the view that the penalty imposed deserves to be deleted. 5. Besides the above, We also agree with the submission of the learned counsel for assessee that the provisions of section 139(4A) are applicable only in case where exemption is claimed u/s 11 and 12 of the Act and not in case where income of an organization does not form part of the total income under the Act in view of the provisions of Sec.10(23C)(iiiad) of the Act. Provisions of Sec.139(4A) makes a reference only to provisions of Sec.11 and 12 and not to the provisions of Sec.10(23C(iiiiad) of the Act. 6. For the reasons given ..... X X X X Extracts X X X X X X X X Extracts X X X X
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