2024 (10) TMI 1787

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....-appeal dated 31.01.2024 passed by same CIT (A) which in turn arises out of assessment-order dated 30.12.2019 passed by Exemption Circle, Bhopal ["AO"] u/s 143(3) of the Income-tax Act, 1961 ["the Act"]. 2. Since these appeals relate to the same assessee, they were heard together at the request of parties and are being disposed of by this consolidated order for the sake of convenience, brevity and clarity. 3. There are small delays of 12 days and 6 days in filing assessee's twin appeals. The assessee is a University. The assessee has filed condonation application explaining that there was ongoing strike in its Finance Department and the counsel was authorised to file appeals after appointment of new Registrar in Finance Department which has only resulted in small delays. Ld. AR for assessee submitted that the delay is not because of any negligence, mala fide intention or ulterior motive and the assessee does not stand to derive any benefit by making delay. He submitted that the delay is solely because of strike which was a 'sufficient cause' and therefore the delay ought to be condoned. Ld. DR for revenue did not object to the submission of Ld. AR. Considering the explanation....

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....gal provision that the assessee is subsequently registered by Income-tax Department u/s 12A(1)(aa) read with section 12AA from AY 2019-20 onwards vide Order No. ITBA/EXM/S/12AA/2019-20/1016373495(1) dated 17.06.2019 issued by CIT (Exemption), Bhopal and therefore entitled to exemption u/s 11/12 of the Act for preceding years also in terms of proviso to section 12A(2) reading as under: "12A(2) Where an application has been made on or after the 1st day of June, 2007, the provisions of sections 11 and 12 shall apply in relation to the income of such trust or institution from the assessment-year immediately following the financial year in which such application is made. Provided that where registration has been granted to the trust or institution under section 12AA, then, the provisions of sections 11 and 12 shall apply in respect of any income derived from property held under trust of any assessment year preceding the aforesaid assessment year, for which assessment proceedings are pending before the Assessing Officer as on the date of such registration and the object and activities of the trust or institution remain the same for such preceding assessment year:" ....

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.... as admissible u/s 11 / 12 to the assessee." 7. Ld. AR prayed that the AY 2011-12 under consideration in these appeals was also at par with AY 2014-15, therefore the assessee is very much entitled to the benefit of very same proviso to section 12A(2). Hence, a prayer is made to remand these appeals to AO as has been done by ITAT, Indore in aforesaid order for AY 2014-15. 8. Ld. DR for revenue fairly agreed to the submission and prayer of Ld. AR. 9. In view of above submissions and consensus by parties, we remand these matters to the file of AO in the very same terms as done by ITAT, Indore in Para 11 of order for AY 2014-15 re-produced above. These appeals are accordingly allowed for statistical purpose. AY 2017-18 - Revenue's ITA No. 260/Ind/2024 and Assessee's ITA No. 299/Ind/2024: 10. Ld. AR submitted that for AY 2017-18, the assessee filed return declaring total income of Rs. Nil on 31.03.2018 u/s 139(4) which was subsequently revised on 05.04.2018. The case of assessee was subjected to scrutiny-assessment through notices u/s 143(2)/142(1). During scrutiny proceeding, the AO rejected assessee's claim of exemption u/s 10(23C)(iiiab). The assessee ma....

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.... days but considering the pandemic period and the decision of the Hon'ble Supreme Court by which the Hon'ble Supreme Court has extended the period of limitation across board, I am of the opinion that the delay of 7 days deserves to be condoned. In any case the return was filed before 31.03.2021 which is the last date for filing a belated return of income. It would be pertinent to refer to the above CBDT Circular which is as under :- 10. In my considered opinion the language of the aforementioned Circular is very clear and unambiguous in so far as the return of income filed u/s. 139 of the Act is concerned. Section 139 has several sub sections (1), (2), (3), (4), (4a), (5). I am of the considered view that if the return is filed within the specified time limit of sub-section of 139 would be eligible for the benefit given by the above mentioned CBDT circular and should avail the benefit of exemption u/s. 11 of the Act. In my considered opinion the CIT (A) erred in misinterpreting the aforementioned circular and, therefore, to that extent the order of the CIT (A) is erroneous and deserves to be set aside the grievance of the assessee is allowed." Therefore, Ld. AR prayed t....

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....e time allowed for filing of return of income subsequent to the insertion of Clause (ba) in sub- Section 1 of section 12A of the income-tax Act, 1961. Sir, 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 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 vili 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 under: "as per the existing provisions of said section, the entities registered Under section 12 AA are required to file return of inco....