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TMI Blog2024 (9) TMI 1272X X X X Extracts X X X X X X X X Extracts X X X X ..... son who has not furnished return of income within the time allowed u/s. 139(1) of the Act, may furnish the return for any previous year at any time before the end of the relevant financial year or before the completion of assessment whichever is earlier. As in term of section 139(4) of the Act, a return filed at a belated stage but upon complying with the requirement of such provision, has to be treated as return of income. In the present case, the CBDT has already clarified vide F.No.173/193/2019-ITA-I dated 23.04.2019, which that the assessee is entitled for exemption u/s. 11 of the Act, if such return of income is filed within the time allowed u/s. 139 of the Act. It means that it covers all the provisions of section 139 of the Act and it is not limited to section 139(1) - Appeal filed by the assessee is allowed. - Shri Mahavir Singh, Vice President And Shri S.R. Raghunatha, Accountant Member For the Appellant : Ms. Pavithra Mucherla, CA For the Respondent : Ms. R. Anita, Addl. CIT ORDER PER MAHAVIR SINGH, VICE PRESIDENT: This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi in Order No. ITBA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... professional to complete the work. The trustee should have given the details to chartered accountant who in turn could file the ITR. It was not necessary that the ITR could be filed only when the trustee himself do this. The ITR must be filed within the due dates as decided by the Hon'ble Parliamnent of India. Thus, the assessee failed to justify not filing the ITR within stipulated time limits as per law. The reason that there was pain in the right hand of the trustee and due to that the ITR could not be filed within stipulated time is not tenable. The time limit to file the ITR as per S.139(4A) is same as per S.139(1) of the Act. Thus the assessee failed to file the ITR within the time stipulated u/s 139(1) of the Act for A Y 2018-19. The ITR was filed beyond the time allowed u/s 139(1) as required u/s. 12(A)(ba) of the Act. In view of the provisions aforementioned, the assessee trust is not eligible for exemption u/s. 11 12 of the IT Act 1961 as the ITR was not e-filed on or before due dates. Accordingly, the income of Rs. 79,92,658/- added back to the total income as computed and disallowed the claim of exemption under section 11 and 12 of the Income-tax Act 1961 for failur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equently, it has adopted or undertaken modifications of the objects which do not conform to the conditions of registration, in the prescribed form and manner, within a period of thirty days from the date of said adoption or modification, to the Principal Commissioner or Commissioner and such trust or institution is registered under section 12AA. 4.1 The ld.AR further stated that the CIT(A) interpreted the provision of section 12A(1)(b)(ii) that the assessee for claiming exemption u/s. 11 has to furnish return of income u/s. 139(4A) of the Act and the CIT(A) referred the relevant provision as under:- (ii) After clause (b), the following clause shall be inserted, namely: - (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. 4.2 The ld.AR narrated that the CIT(A) simpliciter relied on the above provision. She also narrated that the CIT(A) has gone through the provisions of section 139(4A) of the Act and the relevant provision reads as under:- Provisions of Section 139(4A) read as under: (4A) Every person in receipt of income de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 12A of the Act was made so as to provide additional condition that the person in respect of income chargeable to income-tax claiming exemption shall furnish return of income within the time allowed u/s. 139 of the Act. She stated that the assessee s case is squarely covered by the CBDT Circular No.2/2018 dated 15.02.2018. 5. We noted that even in regard to representation received by CBDT for the applicability of amended provisions of section 12AA of the Act for filing of return required u/s. 139(4A) of the Act, CBDT referring the Finance Bill, 2017 has clarified vide F.No.173/193/2019-ITA-1 dated 23.04.2019 as under:- F.No. 173/193/2019-ITA-I Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, 23 April, 2019 To, The Pr. DGIT (Systems), New Delhi. Subject : Clarification with regard to the time allowed for filing of return of income subsequent to the insertion of Clause (ba) in sub section 1 of section 12A of the income tax Act , 1961. Sir, Undersigned is directed to refer to the representation(s) received on above mentioned subject stating that while processing of ITR-7 for the A.Y. 2018- 19, in respect of the belated returns f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, for a trust registered u/s 12AA of the Act to avail the benefit of exemption u/s 11 shall inter-alia file its return of income within the time allowed u/s 139 of the Act. Accordingly, orders u/s 143(1)(a) in those cases in which demand has been raised on this issue may please be rectified. This issues with the approval of Chairman(CBDT). (Vinay Sheel Gautam) JCIT (OSD) (ITA-I) Telefax: 011-23093070 E-mail: [email protected] Copy to:- The Pr. CCIT(Exemptions), New Delhi. 5.1 From the above communication, it is clear that CBDT has taken a conscious decision and finally agreed for the position that trust registered u/s. 12AA of the Act, in order to avail the benefit of exemption u/s. 11 of the Act shall inter-alia files its return of income within the time allowed u/s. 139(1) of the Act. The CBDT has categorically directed the Assessing Officers and this clarification was issued to the Pr.DGIT(Systems), New Delhi that the orders issued u/s. 143(1A) of the Act in the case where already disallowance were carried out, those may be rectified. Hence, the CBDT itself accepted the position that even returns filed u/s. 139 is to be accepted. It means that it has enlarged its scope o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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