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TMI Blog2024 (11) TMI 1320X X X X Extracts X X X X X X X X Extracts X X X X ..... AO has passed the order accepting the returned income after considering explanation and details filed by assessee. As decided in case of United Educational Society [ 2019 (7) TMI 738 - ITAT DELHI ] filing of income u/s 139(4A) of the Act was not statutorily compulsory in AY.2017-18. Hence, the AO has rightly accepted the return of the assessee field u/s 148 of the Act. We find that clause (ba) to sub-section (1) of section 12A was inserted by Finance Act, 2017 w.e.f. 01.04.2018. The said clause provides w.e.f. 01.04.2018, and applicable for AY.2018-19 and subsequent years, that the person in receipt of income shall furnish the return of income referred to in sub-section (4A) of section 139 within the time allowed under that section. The ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner of Income Tax (Exemption), Ahmedabad [in short, CIT(E) ] for the assessment year (AY) 2017-18. 2. The grounds of appeal raised by the assessee are as under: 1. The Ld. CIT(E) has erred and was not just and proper on the facts of the case and in law in considering the Assessment Order dated 09/03/2022 passed u/s 147 r.w.s. 144B as erroneous and prejudicial to the interests of revenue and passing order u/s 263 for considering the issue of allowance of Exempt afresh. 2. PRAYER 2.1 The order u/s 263 passed by the Ld. CIT(E) may be kindly set aside. 2.2 Personal hearing may be granted. 2.3 Any other relief that your honours may deed fit may be granted. 3. the assessee craves leave to add, amend, modify, alter or delete any of the grounds at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 139 within the due date and also the audit report (Form 10B) within the due date specified for filing the audit report. Hence, assessee was not eligible for any claim of exemption u/s 11 and 12 of the Act. The CIT(E) issued show cause notice on 19.09.2023, requesting to assessee to submit explanation and clarification. In reply to the above notice, the assessee filed written submission and relied upon decision of ITAT, Delhi in case of United Educational Society vs. JCIT, 107 taxmann.com 127 wherein it was held that return filed u/s 148 has to be treated as return u/s 139 which will include section 139(4A) and once such return is treated as return filed u/s 139, then all provisions of the Act will apply including section 11 of the Act. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ortion of the AO. We have also deliberated on the decision relied upon by the Ld. AR. There is no dispute regarding the fact that assessee had not filed its return of income u/s 139 of the Act. It filed the return of income, declaring total income of Rs. 10,27,436/- only after receiving notice u/s 148 of the Act. The AO has passed the order accepting the returned income of Rs. 10,27,436/- after considering explanation and details filed by assessee. The CIT(E) referred to provisions of section 139(4A), 12A(1)(b) of the Act and stated that assessee was liable to file return of income for AY.2017-18 and also to file audit report in the prescribed proforma. Therefore, the assessee was not eligible for exemption u/s 11 of the Act. However, AO ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cordingly, apply in relation to AY.2018-19 and subsequent years. The clause will not be applicable to the subject AY.2017-18. The ITAT, Delhi in case of United Educational Society (supra), under similar facts, has decided the issue in favour of assessee. At para 25, it was held as under: The amendment made by the Finance Act, 2017 inserted clause (ba) imposing a further condition that such return of income is to be furnished in terms of section 139(4A), within the time allowed under that section. Firstly, this requirement was not there before this amendment; and secondly, this insertion of additional clause clearly shows that such condition was not there in existing clause (b) of section 12A. Had such condition being there in clause (b) its ..... X X X X Extracts X X X X X X X X Extracts X X X X
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