9911796707
TMI Blog2024 (11) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... e issue of exemption has been decided in assessee s favor by the Tribunal for AYs 2002-03, 2007-08 and 2010-11. Assessee has not filed the return of income as mandated u/s 139(1) - The circumstances under which the return of income could not be filed have not been considered in the required perspective. Due to efflux of time and change in office bearers of the assessee trust, the grant of registration by the CIT-TN III could not be traced and hence the reference thereto by way of identification as C. No. could not be furnished in the returns of income for AY 1997-98. In the era of electronic filing of return of income w.e.f. 01-04-2013, the mentioning of this information became mandatory and the assessee was unable to e- file the returns fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issued to the assessee on 22-03-2021. The assessee declared nil income in its return filed on 21- 04-2021. After calling for various details, Ld. AO accepted the returned income and finalized the assessment. The assessee furnished various replies during the course of assessment proceedings. 3. Subsequently, upon perusal of case records, Ld. CIT(E) noted that the assessee was registered u/s 12AA on 06-09-2016. The Ld. AO inadvertently allowed exemption u/s 11 and arrived at nil income. In terms of statutory requirement, the assessee was required to file the return of income within time allowed u/s 139(1). However, the assessee filed return of income during reassessment proceedings only on 21-04- 2021. Therefore, the aforesaid exemption would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itten submissions of Ld. AR, it would emerge that the assessee trust was established in the year 1954 and continue to enjoy the exemption as applicable to a charitable trust. Its registration has never been cancelled at any point of time. The assessee has been assessed to Income tax even under the erstwhile provisions of the Income Tax Act 1922. The assessee is filing return of income and granted this exemption since past many decades. The Ld. AR has submitted that the erstwhile provisions of Sec. 12A granted automatic approval as a charity on filing of requisite Form No. l0A before the CIT- TN III to grant exemption u/s. 11 to 13 since the year 1973 without seeking any explanation on the nature of activities of the Trust, so long as it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decided in assessee s favor by the Tribunal by treating the assessee as a registered trust within the meaning of Sec. 12A of the Act. The Tribunal in ITA No.2076 and 2077/Mds/2011 order dated 16-04-2012, set aside the assessments framed to cause enquiry about the availability of registration in the office of the CIT in view of the ex-facie availability thereof qua the assessments framed for assessment years 1980-81, 1987-88 and 1988-89 post scrutiny of returns filed there-under. Though the department again denied the exemption to the assessee, the Tribunal reinforced its views vehemently in favour of the assessee that registration, ab-initio, was indeed available to the Trust vide its further orders in ITA Nos.1902, 1903 and 1904/Mds/2013 d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... partment premises itself. The returns of income, in this manner, were filed for AYs 2013-14 to 2015-16, through registered post only to ensure compliance with the requirement of filing of Returns of income. It has further been submitted that this method of physical filing of return of income for AY 2013-14 is suspected by the CIT (Exemption) to state that there is no original return of income available on record to invoke the provisions of Section 12A(l)(ba) retrospectively so as to deny the benefit of exemption of receipts and expenditure u/s. 11 to 13 of the Income Tax Act. The Ld. AR has further submitted that Ld. CIT(E) has refused to take cognizance of the aforesaid explanations rendered by the assessee. In fact, Ld. AO, in its letter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11. The only reason to invoke the revisionary power is the allegation that the assessee has not filed the return of income as mandated u/s 139(1). However, the circumstances under which the return of income could not be filed have not been considered in the required perspective. Due to efflux of time and change in office bearers of the assessee trust, the grant of registration by the CIT-TN III could not be traced and hence the reference thereto by way of identification as C. No. could not be furnished in the returns of income for AY 1997-98. However, in the era of electronic filing of return of income w.e.f. 01-04-2013, the mentioning of this information became mandatory and the assessee was unable to e- file the returns for AYs 2013-14 to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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