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TMI Blog2024 (6) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... r this year was that the return should be filed within the time allowed under that section (i.e. u/s. 139 of the Act). Section 139 provides time limit for filing of original return, belated return, revised return as well as updated return. Thus, all these category of returns were eligible for consideration under the general time line of section 139 of the Act.There is no dispute to the fact that the assessee has filed its return of income for this year within the time limit of section 139(4) of the Act. Therefore, the department was not correct in denying the exemption u/s. 11 of the Act while processing the return. The Circular F No. 173/193/2019 ITA-1, dated 23.04.2019 issued by the CBDT and relied upon by the assessee refers to Memorandum to the Finance Bill, 2017 and gives clarification in respect of amendment to section 12A of the Act, that a person in receipt of the income chargeable to income tax shall furnish the return of income within the time allowed u/s. 139 of the Act. As per this clarification, the return of income was required to be filed within the time allowed u/s. 139 of the Act Exemption u/s. 11 of the Act was available in respect of the return of income filed u/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r set apart for application to charitable purpose u/s. 11 of the Act. The assessee had filed an appeal before the CIT(A) against the adjustments made while processing the return. The Ld. JCIT(A) has upheld the adjustments vide the impugned order for the following reason: 6.7 The CPC, Bengaluru processed return u/s. 143(1) disallowing revenue expenditure of Rs. 4,88,11,072/- u/s. 11 of the Income Tax Act, 1961, as the Return of Income and Form 10B was filed late. The due date for filing of Form 10B was 15.02.2021. Delay was condoned by CIT(Exemption), Ahmedabad vide order No. ITBA/COM/F/17/2022-23/1048595203(1) dated 10.01.2023. However the Return of Income has also been filed late on 31/3/2021 against the due date of 15/2/2021, which has not been condoned. It is a trite law that if a thing is said to be done in a particular manner, it shall be done in that manner and its performance in any other mode or fashion shall be of no consequence. Therefore, in application of the above decisions of the apex court and also the mandated provisions of the statute, the Assessing Officer has rightly disallowed the exemption claimed and made addition of the same to the total income of the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... limit as available u/s. 139(1) of the Act only. As the assessee did not file the return within this time limit, the adjustment made by the CPC and the disallowance of exemption u/s. 11 of the Act was correctly made. 6. We have carefully considered the rival submissions. The provision of Section 12A of the Act stipulates that the provision of section 11 section 12 of the Act will not be applicable in relation to the income of any trust or institution, unless the conditions as prescribed u/s. 12A are fulfilled. One of the condition as mentioned in Section 12A(1)(ba) of the Act is that return of income has to be furnished in accordance with the provisions of sub-section (4A) of Section 139 of the Act, within the time allowed under that section. The provision of Section 139(4A) of the Act is applicable to charitable trust who are required to furnish the return of income; as if it were a return required to be furnished under sub-section (1). It is on the strength of this provision that the contention of the department is that in order to claim exemption u/s. 11 or 12 of the Act, the return of income has to be filed within the time limit as per Section 139(1) of the Act. 7. The provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 10 of the Act will be available only if the return of income has been furnished within the time allowed under sub-section (1) or sub- section (4) of section 139 of the Act. d. Hence, it is proposed to, a) amend the twentieth proviso of clause (23C) section 10 of the Act to provide that the fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or subclause (via) shall furnish the return of income for the previous year in accordance with the provisions of sub-section (4C) of section 139 of the Act, within the time allowed under sub-section (1) or sub-section (4) of that section. b) amend clause (ba) of sub-section (1) of section 12A of the Act to provide that the person in receipt of the income shall furnish the return of income for the previous year in accordance with the provisions of subsection (4A) of section 139 of the Act, within the time allowed under subsection (1) or sub-section (4) of that section. e. These amendments will take effect from 1 st April, 2023 and will accordingly apply in relation to the assessment year 2023-24 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 139 of the Act or otherwise. In order to provide clarity in this regard, it is proposed to further amend section 12A so as in 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 subsequent years. 3. Additionally, an excerpt of circular No. 2/2018 dated 15-2-2018 Explanatory Notes to the Provisions of the Finance Act, 2017 on insertion of clause (ba) in Sub-section (1) of section 12A is quoted as under: The entities registered under section 12AA are required to file return of income under sub-section (4A) of section 139 of the Income-tax Act, if the total income without giving effect to the provisions of sections 11 and 12 exceeds the maximum amount which is not chargeable to income-tax. Amendment to section 12A of the Income-tax has been made so as to provide for additional condition that the person in receipt of the income chargeable to income-tax shall furnish the return of i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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