TaxTMI 
TaxTMI 
2022 (11) TMI 1035
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....ts of the case, in brief, are that the assessee is a society registered under the Telangana Societies Registration Act, 2001. It is formed for the purposes of welfare of the journalists by improving the living standards of the journalists and to support their families through various welfare activities and other similar objects. It is granted registration u/s. 12AA of the I.T.Act, 1961 vide registration No. CIT(Exemption), HYd/12AA/2018- 19/A/10317. It filed its return of income on 31.03.2021 belatedly but within the time permitted u/s. 139(4) r.w.s. 139(4A) along with audit report in form 10B declaring 'nil' total income. An intimation u/s. 143(1), dated 24.12.2021 was issued to the assessee determining the total income at Rs.24,51,44,792/....
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....lure to do so results in denial of deduction u/s. 11 of the Act. In the given case the due date for furnishing of return of income was 15/02/2021. The appellant has furnished the return along with the audit report in Form 10B on 31.03.2022. Thus the return and audit report was filed beyond the prescribed time limits and accordingly the conditions as laid down in section 12A(1)(ba) were not complied with hence at the time of processing of return the CPC has not allowed the deduction claimed u/s 11 of the Act. 7.6. The appellant has claimed that even if section 11 deduction is denied the voluntary contributions to the corpus fund are exempt as they are in nature of capital receipts. In this regard as discussed in para 7.2 above. the ....
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....eby dismissed. 5. Aggrieved with such order of the Ld.CIT(A)/NFAC, the assessee is in appeal before the Tribunal by raising the following grounds. 1. The Ld CIT-A erred in law and in facts of the case in confirming the intimation of the CPC passed U/S 143(1) which determined the Total Income at Rs. 24,51,44,792 and the taxes and other sums payable at Rs 12,83,26,572; 2. The Ld CIT-A erred in law and in facts of the case in conforming the intimation of the CPC which failed to appreciate the fact that Corpus Donations partake the character of capital receipts and hence could not be taxed even though the appellant was denied the benefit of Sec 11 and 12; 3. The Ld CIT-A erred in law and in facts of the case in con....
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....pplicable to AY 2018-19 and subsequent years. 6.1 In his alternate contention, he submitted that he has no objection if the matter is restored to the file of the AO with direction to consider the CBDT instruction on this issue for claiming the deduction u/s. 11 and 12A even in respect of returns filed u/s. 139(4) & 139(4A). 6.2 The ld. DR on the other hand while relying on the order of the ld. CIT(A) submitted that he has no objection if the issue is restored to the file of the ld.CIT(A)/NFAC with direction to decide the issue afresh in the light of the CBDT instruction No.173/193/2019-ITA-1 relied on by the ld.counsel for the assessee according to which benefit of section 11 and 12A cannot be denied in case where returns are filed u/....
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.... 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 filed u/ s 139(4) of the Income Tax Act, 1961 (Act), the following is being communicated u/s 143(1)(a) of the Act:- "As per section 12A(1)(ba) of the Income -tax Act , 1961 the person in receipt of the income has furnished the return of income for the previous year in acc....
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....rovisions 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 income within the time allowed under section 139 of the Income -tax Act." 3. Thus, for a trust registered U/s 12AA of the Act to ....