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TMI Blog2023 (7) TMI 278X X X X Extracts X X X X X X X X Extracts X X X X ..... even if the assessee files the return before the last date of filing of belated return the same should be treated as due compliance to section 12A(1)(ba) of the Act. For the year under appeal, the belated return could have been filed before 31.03.2019, and since the assessee has filed the return on 15.11.2018, therefore, considering the directions of CBDT Circular dated 23.04.2019, which are binding on the Revenue authorities, we are of the view that the assessee has fulfilled the conditions provided under sub-clause (ba) of section 12A(1) of the Act and has filed the return of income within the time allowed - Decided in favour of assessee. - I.T.A. No. 241/Kol/2023 - - - Dated:- 27-6-2023 - Shri Sanjay Garg, Judicial Member And Shr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A(1)(ba) r.w.s 139(4A) of the Act. 4. At the outset the ld. counsel for the assessee has submitted that the issue is squarely covered by the decision of the Tribunal in the case of Bangarh Educational Welfare Trust vs. ITO in ITA No.496/Kol/2021 dated 02.01.2022, wherein the Tribunal taking note of the CBDT Circular No.F.No.173/193/2019-ITA-I dated 23.04.2019 has decided the matter in favour of the assessee observing as under: 8. We have heard the rival contentions and perused the records placed before us. The assessee is a charitable trust established for imparting education to rural areas without any profit motive. It enjoys registration u/s 12AA of the Act granted vide order dated 12.09.2018 effective from A.Y 2018- 19 onwards. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ified date referred to in section- 44AB and the person in receipt of the income furnishes by that date] the report of such audit in the prescribed form 49 duly signed and verified by such accountant and setting forth such particulars as may be prescribed;] (ba) the person in receipt of the income has furnished the return of income for the previous year in accordance with the provisions of sub-section (4A) of section-139, within the time allowed under that section. *** *** *** 9. Section 12A(1)(ba) of the Act provides that the provisions of section 11 and 12 shall apply in relation to income of any trust or institution if the person in receipt of the income has furnished the return of income for the previous year in accordance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order dated 24.09.2018. Now, since the assessee has filed the return on 15.11.2018, it is a belated return. Thus, there remains no dispute to the fact that the return of income filed by the assessee is a belated return which as per section 139(5) of the Act could have been filed latest by 31.03.2019. Now, at this stage, we would like to refer to Circular issued by CBDT on 23.04.2019 giving clarification with regard to time allowed for filing of return of income subsequent to insertion of clause (ba) in sub-section 1 of section 12A of the Act and the same is reproduced below: F.No. 173/193/2019-ITA-I Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, Dated: 23 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ALTIES FOR DELAYED FILING OF RETURN IN ITR-7 the provisions of sections 11 and 12 exceeds the maximum amount which is not chargeable to income-tax. However, there is no clarity as to whether the said return of income is to be filed within time allowed u/ s 139 of the Act or otherwise. In order to provide clarity in this regard , it is proposed to further amend section 12A so as to provide for further condition that the person in receipt of the income chargeable to income tax shall furnish the return of income within the time allowed under section 139 of the Act. These amendments are clarificatory in nature. These amendments will take effect from 1st April, 2018 and will, accordingly, apply in relation to assessment year 2018-19 and sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed within the time allowed u/s 139 of the Act. It further states that orders u/s 143(1)(a) of the Act in those cases in which demand has been raised on this issue may please be rectified. From the circular, we note that an amendment was brought in by insertion of clause (ba) of section 12A(1) of the Act from 2018- 19 onwards through which one of the requirements for claiming the benefit u/s 11 and 12 of the Act was to file the return of income within time allowed u/s 139(4A) of the Act. It seems that specially for A.Y 2018-19, when the Form ITR-7 was being processed and for such belated return, demand was raised, representations were received from various assessees on this issue. Taking note of this issue, the said CBDT Circular has issu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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