9911796707
TMI Blog2023 (3) TMI 765X X X X Extracts X X X X X X X X Extracts X X X X ..... concerned. In the case of Jaya Educational Trust [ 2021 (7) TMI 773 - ITAT CHENNAI] ITAT held that where assessee had filed return of income within due date specified under section 139(4) and also filed Form No. 10 electronically before completion of assessment, assessee could not be denied exemption under section 11. Accordingly, in view of the above discussion, delay in filing Form 10-B would not have any impact on the assessee’s claim of deduction u/s 11 and 12 of the Act. Whether delay in filing the return of income beyond the due prescribed date would impact the claim of exemption to the assessee under section 11 and 12 of the Act? - In the instant facts, the due date of filing of return of income u/s 139(1) of the Act was 15- 02-2021, while the assessee filed return of income on 18-03-2021. Accordingly, admittedly there is a delay in filing return of income on part of the assessee. However, the CBDT vide Circular CBDT F. No.173/193/2019 –ITA –I dated 23.04.2019 has clarified with regard to the time allowed for filing of the return of income subsequent to the insertion of clause (ba) in sub section (1) of section 12A of the IT Act which includes the IT return filed within the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and/or modify the grounds of appeal. 3. The brief facts of the case are that the assessee is a public charitable trust duly registered under the provisions of Mumbai Trust Act, 1950 and Section 12A of the Income Tax Act, 1960. For the year under consideration, the assessee e-filed its return of income on 10-02-2021 declaring total income and expenditure as under:- 2. For the assessment year under consideration the appellant e-filed its return of income on 10/02/2021 declaring therein income and expenditures as under: Particulars Amount (Rs.) Voluntary contribution other than corpus fund 12,000 Income u/s 11/12 13,93,398 Gross Income 14,05,398 Less: Total Deductions / Exemptions claimed u/s 11 (12,72,788) ---------- Net Total Income 1,32,610 The CPC while processing u/s. 143(1) of the Act denied the claim of deduction of the assessee u/s. 11 of the Act on the ground that the assessee failed to furnish form 10B along with the return of income u/s. 139 as required under the Act. During the year under consideration, the return of income for assessment year 2020-2021 as well as from 10B were filed by the assessee on 18-03-2021, which, admittedly was beyond the prescribed time limit for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the relevant year. However, in appellant's case, the delay in furnishing of Form 10B stands condoned as on date, by the order of CIT(Exemption), cited supra. 4.5 Further, as per sub section (9) of Section 13, twin conditions are imposed on the assessee seeking exemption under section 11/12, whereby the return of income as well as the Audit Report are ought to be filed within the prescribed due date u/s 139(1) of the Act. The relevant provisions of the Act are extracted as under: Section 11 not to apply in certain cases Section 13 (9) Nothing contained in sub-section (2) of section 11 shall operate so as to exclude any income from the total income of the previous year of a person in receipt thereof if (i)the statement referred to in clause (a) of the said sub-section in respect of such income is not furnished on or before the due date specified under sub-section (1) of section 139 for furnishing the return of income for the previous year. (ii) the return of income for the previous year is not furnished by such person on or before the due date specified under subsection (1) of section 139 for furnishing the return of income for the said previous year. 4.6. In appellant's cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvisage examination of such alternate pleas and unless and until a claim is validly made in the return, no such relief can be granted under section 143(1) of the Act. Since the appellant had failed to furnish the return of income within the prescribed time limit u/s 139(1), in the absence of any condonation thereof by the appropriate authority in exercise of powers granted u/s 119(2) of the Act, claim of exemption under section 11 and 12, would automatically stand negated u/s 143(1) of the Act. 4.10. It may be pertinent to quote the Hon'ble Bombay High Court in the case of Commissioner of Income-tax v. Shivanand Electronics 209 ITR 63 to emphasis the point : When the Legislature casts a duty on the assessee claiming certain benefit, to comply with requirements which are associated with such benefit, the assessee cannot get the benefit without doing his part of the duty. He cannot be allowed to say that it was for the ITO to ask him to do so. If the assessee does not do his part of the statutory duty, the ITO may proceed to decide the allowability or otherwise of the relief on the basis of the facts and material 4.11. For detailed reasons cited as above, intimation issued u/s.14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Exemption), no question of invoking section 12A(b) arises. In the alternative, the counsel for the assessee submitted that the provisions of section 143(1) of the Act do not encompass within its scope disallowance of expenditure claimed by the assessee in its computation of income. Accordingly, even if it were to be assumed that the assessee is not eligible to claim deduction u/s. 11 of the Act, even otherwise the expenses claimed by the assessee cannot be denied u/s. 143(1) of the Act. Finally, the counsel for the assessee agreed that CPC processed the order u/s. 143(1) without prior intimation to the assessee as to which specific adjustment so made by the assessee is in contravention of the first and second proviso to sub-section (1) of section 143. Accordingly, the order passed by CPC u/s. 143(1) of the Act is erroneous in law and hence liable to be set aside. 5. In response, the ld. Departmental Representative placed reliance on the observations made by the ld. CIT(A) in the appellate order. 6. We have heard the rival contentions and perused the material on record. We shall sub-divide our analysis and conclusions, for better understanding of situation before us and applicabilit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er delay in filing the return of income beyond the due prescribed date would impact the claim of exemption to the assessee under section 11 and 12 of the Act. In the instant facts, the due date of filing of return of income u/s 139(1) of the Act was 15- 02-2021, while the assessee filed return of income on 18-03-2021. Accordingly, admittedly there is a delay in filing return of income on part of the assessee. However, the CBDT vide Circular CBDT F. No.173/193/2019 ITA I dated 23.04.2019 has clarified with regard to the time allowed for filing of the return of income subsequent to the insertion of clause (ba) in sub section (1) of section 12A of the IT Act which includes the IT return filed within the time allowed u/s. 139 of the Act. Notably, the Delhi ITAT in the case of Conference of Religious India v. Ward Exemption 1(3) in ITA No.2161/Del/2022 (for assessment year 2020-21) has held that benefit of exemption u/s. 11 of the Income Tax Act was available to the assessee as the income tax return was filed within the specified time limit of sub-section 139 of the Income Tax Act. The ITAT made the following observations while passing the order: 10. In my considered opinion the languag ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
