TaxTMI 
TaxTMI 
2024 (6) TMI 235
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....ing exemption of Rs. 4,28,49,304/- being amount applied for the purpose of the object of the Trust (revenue expenditure) and an amount of Rs. 59,61,768/- accumulated or set apart for application to charitable purpose u/s. 11 of the Act. The assessee had filed an appeal before the CIT(A) against the adjustments made while processing the return. The Ld. JCIT(A) has upheld the adjustments vide the impugned order for the following reason: "6.7 The CPC, Bengaluru processed return u/s. 143(1) disallowing revenue expenditure of Rs. 4,88,11,072/- u/s. 11 of the Income Tax Act, 1961, as the Return of Income and Form 10B was filed late. The due date for filing of Form 10B was 15.02.2021. Delay was condoned by CIT(Exemption), Ahmedabad vide order No. ITBA/COM/F/17/2022-23/1048595203(1) dated 10.01.2023. However the Return of Income has also been filed late on 31/3/2021 against the due date of 15/2/2021, which has not been condoned. It is a trite law that if a thing is said to be done in a particular manner, it shall be done in that manner and its performance in any other mode or fashion shall be of no consequence. Therefore, in application of the above decisions of the apex court and....
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....le processing return was not correct. 5. Shri Aarsi Prasad, ld. CIT-DR., on the other hand, submitted that as per provision of Section 12A(1)(ba) of the Act, the return of income was required to be furnished within the time limit as available u/s. 139(1) of the Act only. As the assessee did not file the return within this time limit, the adjustment made by the CPC and the disallowance of exemption u/s. 11 of the Act was correctly made. 6. We have carefully considered the rival submissions. The provision of Section 12A of the Act stipulates that the provision of section 11 & section 12 of the Act will not be applicable in relation to the income of any trust or institution, unless the conditions as prescribed u/s. 12A are fulfilled. One of the condition as mentioned in Section 12A(1)(ba) of the Act is that return of income has to be furnished in accordance with the provisions of sub-section (4A) of Section 139 of the Act, within the time allowed under that section. The provision of Section 139(4A) of the Act is applicable to charitable trust who are required to furnish the return of income; as if it were a return required to be furnished under sub-section (1). It is on the stre....
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.... and sub-clause (iv)/(v)/(vi)/(via) of clause (23C) of section 10 of the Act will be available to the trusts where they furnish updated return of income. Accordingly, it is proposed to clarify that the exemption under section 11, 12 and sub-clause (iv)/(v)/(vi)/(via) of clause (23C) of section 10 of the Act will be available only if the return of income has been furnished within the time allowed under sub-section (1) or sub- section (4) of section 139 of the Act. d. Hence, it is proposed to, a) amend the twentieth proviso of clause (23C) section 10 of the Act to provide that the fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or subclause (via) shall furnish the return of income for the previous year in accordance with the provisions of sub-section (4C) of section 139 of the Act, within the time allowed under sub-section (1) or sub-section (4) of that section. b) amend clause (ba) of sub-section (1) of section 12A of the Act to provide that the person in receipt of the income shall furnish the return of income fo....
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.... section 12AA are required to file return of income under subsection (4A) of section 139, 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. However, there is no clarity as to whether the said return of income is to be filed within time allowed under section 139 of the Act or otherwise. In order to provide clarity in this regard, it is proposed to further amend section 12A so as in provide for further-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 Act. These amendments are clarificatory in nature. These amendments will take effect from 1st April, 2018 and will, accordingly, apply in relation to assessment year 2018-19 and subsequent years." 3. Additionally, an excerpt of circular No. 2/2018 dated 15-2-2018 "Explanatory Notes to the Provisions 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 (4....