2025 (1) TMI 1391

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.... main grievance of the assessee is against the action of the CPC denying the exemption claimed u/s.11 of the Income Tax Act, 1961 (hereinafter in short "the Act") only on the ground that the assessee didn't file the return of income (RoI) within the time limit prescribed u/s.139(1) of the Act. 3. The brief facts are that the assessee is a Trust, which enjoyed section 12A registration and filed its Return of Income [RoI] for AY 2018- 19 belatedly on 30.11.2018 declaring total income of Rs.  NIL and claimed refund of Rs. 1,96,656/-. However, the CPC while processing the return u/s.143(1) of the Act on 30.09.2019 computed the total income at Rs. 2,14,33,895/- and raised demand of Rs. 92,83,542/- instead of refund of Rs. 1,96,656/- as c....

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....f 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 accordance with the provisions of sub-section (4A) of section 139, within the time allowed under that section. Otherwise the exemption u/s-11 i.e. sr. no 4(i) and 4 viii in schedule Part BTI is not allowed." Based on this, exemption u/s 11 of the Act has been denied to otherwise eligible trust, thereby creating huge demand. 2. In the matter, the memorandum explaining the relevant provisions of the Finance Bill, 2017 reads as und....

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....e 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 avail the benefit of exemption u/s 11 shall inter-alia file its return of income within the time allowed u/s 139 of the Act. Accordingly, orders u/s 143(1)(a) in those cases in which demand has been raised on this issue may please be rectified. This issues with the approval of Chairman(CBDT).[Emphasis given by us] 4. On the strength of the aforesaid Circular, the Ld.AR submitted that since the assessee is registered u/s.12AA of the A....