2017 (1) TMI 451

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.... of income, the AO issued a notice u/s 142(1) requiring the assessee to file return of income. The assessee neither complied with this notice nor filed return of income in terms of section 139 or 142(1) of the Act and hence, the Assessing Officer proceeded to initiate best judgment assessment u/s 144 of the Act as per the notice issued u/s 142(1) of the Act. Accordingly, the Assessing Officer called for details, which were required by her to complete the assessment u/s 144 of the Act. During the course of assessment proceedings, the assessee filed a return of Income on15.2.2013, which was beyond the time allowed u/s 139 and the time given in notice u/s142(1) and, therefore, the Assessing Officer treated the same as invalid. On the basis of ....

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....ribunal was not justified in denying the benefit of exemption u/s 80P of the Act on the mere ground of belated filing of return of income. The Hon'ble High Court was considering the following substantial question of law: "B Whether the Tribunal is justified in denying the exemption u/s 80P of the I T Act 1961 on the mere ground of belayed filing of return by the assessee? C. Whether a return filed by the assessee beyond the period stipulated u/s 139(1)/(4) or section 142(1)/148 can be held as non-est in law and invalid for the purpose of deciding exemption u/s 80P of the I T act, 1961?" 6.1 In considering the above substantial question of law, the Hon'ble High Court rendered the following findings: "18. Questions B & C relate to de....

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....m 1.4.2006. This clearly evidences the legislative intendiment that the inhibition contained in sub section 5 of section 80A would operate by itself. In cases where returns have been filed, the question of exemptions or deductions referable to section 80P would definitely have to be considered and granted if eligible. 20 Hence, question would arise as to whether belated returns filed beyond the period stipulated under section 139(1) or section 139(4) as well as following sections 142(1) and 148 proceedings could be considered for exemption. If those returns are eligible to be accepted in terms of law, going by the provisions of the statue and the governing bind precedents, it goes without saying that the claim for exemption will also sta....