TaxTMI 
TaxTMI 
2024 (6) TMI 1543
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....ection 143(1) of the Act. 2. Briefly the facts of the case are that the assessee society is registered under Section 12A of the Act and it filed its return of income declaring total income of Rs. 1,15,900/- alongwith Form 10B on 31/12/2022 as against the due date of filing of the return on 31/10/2022. The return of income so filed was processed by CPC, Bangalore and in the intimation issued under section 143(1) dated 03/03/2023, total income was determined at Rs. 10,77,300/- by disallowing the exemption claimed by the assessee society under Section 11 of the Act. 3. Being aggrieved, the assessee carried the matter in appeal before the Ld. CIT(A). 3.1 It was submitted during the appellate proceedings that the CPC, Bangalore while pr....
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....0B one month before the due date of filing of the return of income, however, the assessee society has not stated anything on the issue as to why it has not filed return of income within the due date of filing of the return of income. 3.5 It was held by the Ld. CIT(A) that the assessee has filed its return of income and Form 10B after the due date for filing the return of income under section 139(1) ie, on 31/12/2022 and accordingly it is not entitled to claim benefit of exemption under section 11 of the Act. It was further held by the Ld. CIT(A) that the judicial decisions relied upon by the assessee in its submissions are all on the issue of non filing of Form 10B/10BB/Audit Report along with the return of income and none of the judicia....
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....d to the assessee society by the ld CIT(A) for the reason that the return of income has been filed belatedly on 31/12/2022 whereas the due date was 31/10/2022 as per Section 139(1) of the Act and against which the assessee society is in appeal before us. 5.1 In this regard, it was submitted that the case of the assessee is squarely coved by the CBDT Circular F.No. 173/193/2019-ITA-I dt. 23/04/2019 and our reference was drawn to the contents thereof which read as under: "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 under section 139(4) of the Income-tax Act, 1961 (Act), the followin....
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.... 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 subsection (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 a....
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....le the return of income within time allowed u/s 139(4A) of the Act. It seems that specially for A.Y 2018-19, when the Form ITR-7 was being processed and for such belated return, demand was raised, representations were received from various assessee on this issue. Taking note of this issue, the said CBDT Circular has issued and while dealing with this issue, the returns filed within the time allowed u/s 139 of the Act have been directed to be accepted for the purpose of considering benefit of deduction u/s 11 of the Act. Now, since only section 139 of the Act has been mentioned and does not specify whether it is about u/s 139(1) of the Act or section 139(5) of the Act, the view beneficial to the assessee needs to be accepted and, since secti....
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.... of the Act. There is thus no requirement under the statute that the return is required to be filed within the due date as prescribed under sub-section (1) to section 139 of the Act and even a return filed under sub-section (4) to section 139 will be a valid return filed under section 139 of the Act. The language of the statue is clear and nothing more can be read or to be understood in this regard and even the CBDT has clarified the same in the aforesaid circular while explaining the insertion of provisions as per the Finance Act 2017. The Coordinate Bench in its decision referred supra has similarly held that only section 139 of the Act has been mentioned and it does not specify whether it is about u/s 139(1) of the Act or section 139(4) ....