TaxTMI 
TaxTMI 
2023 (8) TMI 76
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....hout compliance of Section 139(4A) i.e. after the due date of filing the return. In the Cross Objection, assessee has taken the ground in respect of intimation issued u/s. 143(1) by not following the mandate as required by the 1st proviso to the said section according to which no adjustment shall be made unless an intimation is given to the assessee for the adjustment proposed to be made. 3. Brief facts of the case are that assessee is a Trust registered u/s. 12AA of the Act. Assessee is running an educational institution in the name of Camellia School of Engineering & Technology at Nadibhag, Post Badu Road, Madhyamgram, Kolkata-700129. Assessee filed its return of income in Form ITR 7 u/s. 139(4A) of the Act on 31.03.2021 reporting total income at Rs. Nil. Assessee also filed Form 10B on 30.03.2021. The extended due date for filing return of income in respect of year under consideration was 15.02.2021. In the return filed by the assessee, it reported total receipts of Rs. 5,67,16,797/-. Against these receipts, assessee claimed application of income u/s. 11 of the Act of Rs. 6,83,64,500/- comprising of the following components: (i) Capital expenditure - Rs. 1,41,57,274/- (ii) ....
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....CIT(A) is misplaced since the exclusion given by the Hon'ble Apex Court is in respect of all the judicial or quasi-judicial proceedings. According to Ld. Sr. DR, filing of return and Form 10B does not fall within the meaning of judicial or quasi-judicial proceedings and, therefore, exclusion of limitation shall not apply in this respect. According to Ld. Sr. DR, since the return and Form 10B have not be been filed within the prescribed due date as per Sec. 139(4A) of the Act and both, the return of income and Form 10B are belated, which have been filed u/s. 139(4) of the Act, the exemption claimed u/s. 11 has been rightly rejected. In addition to the oral arguments by Ld. Sr. DR, a written submission has also been placed on record by way of an e-mail dated 21.05.2023 sent to the Registry, wherein the oral arguments have been compiled. Copy of this e-mail was made available to the ld. Counsel of the assessee also. 5. Per contra, Ld. Counsel for the assessee submitted that CPC while processing the belated return of the assessee has accepted the revenue expenditure of Rs. 4,56,99,706/- and capital expenditure of Rs. 1,41,57,274/- as claimed by the assessee in its return, which is evi....
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....h is binding on the Department asserted that time allowed u/s. 139 includes time available u/s. 139(4). Assessee has filed its return within the time allowed u/s. 139(4) which has been processed by CPC. 5.2. The said Instruction of CBDT is reproduced as under: 6. To deal with the grounds of Cross Objection section 143(1)(a) is reproduced below: "Assessment 143 (1) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, such return shall be processed in the following manner, namely:- (a) the total income or loss shall be computed after making the following adjustments, namely:- (i) Any arithmetical error in the return; (ii) An incorrect claim, if such incorrect claim is apparent from any information in the return; (iii) disallowance of loss claimed, if return of the previous year for which set off of loss is claimed was furnished beyond the due date specified under sub-section (1) of section 139; (iv) disallowance of expenditure [or increase in income] indicated the audit report but not taken into account in computing the total income in the return; (v) disallowance of deduction claimed under [section 10AA or....
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.... in the commercial sense has been spent for the purpose of charity, there was no reason to deny the benefit of exemption granted u/s. 11 merely by holding that return has been filed after the due date prescribed u/s. 139(1) of the Act. 7. We have heard the rival contentions and perused the material available on record and have gone through various references made by both the parties in the course of their arguments. We do find force in the submissions made by the Ld. Counsel for his reliance on the CBDT Instruction extracted above, wherein reference is made to sec. 139 in respect of filing of return for the purpose of claiming benefit of exemption u/s. 11 for trust registered u/s. 12AA of the Act. Clarification given by the CBDT instruction gets verified when we refer to the amendment brought in section 12(1)(ba) which now incorporates the time allowed in sub-section (1) or sub-section (4) of section 139 for the purpose of compliance of sub-section (4A) of the said section in respect of furnishing of return of income. 7.1. Assessee in the present case has filed a belated return u/s. 139(4) of the Act which the department has not held it to be a defective return u/s. 139(9) and ha....