2024 (10) TMI 480

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.... 2. The facts of the case, in brief, are that the assessee is an educational society receiving more than 50% grant from the Government. The return of income was furnished on 23.10.2019 declaring Rs. Nil income after claiming exemption u/s 11 of the IT Act. The return was processed by CPC on 09.06.2020, wherein, exemption of Rs. 8,20,35,646/- claimed u/s 11 of the IT Act was denied. The CPC has denied exemption on the ground that the details of registration u/s 12A were not provided. 3. Being aggrieved with the above assessment order, the assessee preferred first appeal before the ld. Addl./JCIT(A)-5, Chennai. After considering the reply of the assessee, the ld. Addl./JCIT(A)-5, Chennai accepted the alternate plea of the assessee & partly....

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.....10B before the time limit u/s. 139(1) was not established. Therefore, the appellant has grossly erred in failing to comply to the conditions laid down u/s. 12A(1)(b) & 12A(1)(ba). Hence, the disentitlement of claim of exemption u/s. 11 that was undertaken by the CPC is upheld and thus the corresponding grounds of the appellant is dismissed. 4.4 Therefore, it remains to be examined as to whether the appellant is eligible for the alternate claim of exemption u/s. 10(23C)(iiiab). On verification of the I & E a/c and the entry in Col. No.9 of Schedule AI: Aggregate of Income of the ITR, it is seen that the appellant has reported the receipt of government grants of Rs. 4.26 crores comprised in the total gross receipt of Rs. 8.20 crores....

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....tion of the assessee, wherein, the assessee has raised the following grounds of cross objection :- "1. The Ld. CIT(A) erred in holding that the appellant trust had filed the Income Tax Return (ITR) on 23.10.2019, which was beyond the time limit specified under section 139(1). The due date for filing the ITR for the assessment year 2019-20 was extended to 31.10.2019, and the appellant filed the ITR within this extended deadline. Thus, the ITR should be considered as filed within the due date, and the CIT(A) has erred in concluding otherwise. 2. The CIT(A) erred in holding that the appellant failed to establish proof of having filed the audit report in Form No. 10B before the time limit under section 139(1). The appellant ha....

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....lowed on alternative grounds but it should have been allowed on the main ground. In support of its contention, ld. AR submitted before us that CBDT has extended the last date for filing of income tax return and various reports of audit pertaining to assessment year 2019-20 which is under consideration. In this regard, an order u/s 119 was referred which was issued by CBDT on 27.09.2019. Vide this order, the last date of filing of income tax return and various reports of audit was extended from 30.09.2019 to 31.10.2019. In the light of this order, ld. AR stated before us that the ld. Addl./JCIT(A)-5, Chennai was not correct in holding that the appellant had filed the ITR and audit report in Form 10B on 23.10.2019 which is beyond time limit s....

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....f above facts, it was prayed before us to allow the exemption as claimed by the assessee u/s 11 of the IT Act. 7. The ld. DR supported the order passed by the CPC and opposed the order passed by the ld. Addl./JCIT(A)-5, Chennai and further requested to cancel the order passed by the ld. Addl./JCIT(A)-5, Chennai on the basis of belated filing of audit report and income tax return. 8. We have heard the ld. Counsels from both the sides and perused the material available on record. We find that in para 4.3 of its order, the ld. Addl./JCIT(A)-5, Chennai has mentioned that filing of return and audit report within the time limit prescribed u/s 139(1) was not established. Therefore, the condition mentioned u/s 12A(1)(b) and section 12A(1)(ba)....