DR HEDGEWAR JANMASHATABDI SEWA SAMITI,AKOLA vs. ITO WARD -2 (EXEMPTION), NAGPUR

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ITA 40/NAG/2026Status: DisposedITAT Nagpur14 May 2026AY 2018-195 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal. It further held that the assessee was eligible for deduction under Section 11 as the return was filed within the time allowed under Section 139(4) of the Act.

What were the facts?

The assessee filed an appeal with a significant delay, which was rejected by the CIT(A). The assessee contended that the delay was due to the inaction of their advocate and other circumstances. The appeal also concerned the eligibility for deduction under Section 11 of the Income Tax Act.

What were the issues?

Whether the delay in filing the appeal should be condoned and whether the assessee is eligible for deduction under Section 11 when the return was filed belatedly.

Which sections of the Income-tax Act were involved?

Section 139,Section 11,Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR BENCH, NAGPUR

Before: HON’BLE MANISH BORAD

For Respondent: Shri Surjit Kumar Saha, Sr.DR

आदेश / ORDER

PER MANISH BORAD, ACCOUNTANT MEMBER: This appeal is filed by the Assessee against the order of Ld. JCIT (A)-3, I.T. DEPT.BENGALURU vide DIN: ITBA/APL/S/250/2025-26/1083120793(1) dated 28- Nov-2025 for the Assessment Year 2018-19 arising out of intimation order dated 30.09.2019 passed u/s 143(1)(a) of the Act.

2.

The Assessee has raised the following grounds of appeal:

1) Ground1. The ld. JCIT is not justified and condoned the delay of more than 6 years in filing the appeal stating that there is no reasonable cause with the assessee for delay in filing the appeal. The ld. JCIT has rejected the application of the assessee for condonation of delay in filing the appeal when the assessee has stated in his application that the delay is on the part of the Advocate of the assessee to whom the assessee has handed over the job to rectify the assessment as per CBDT circular. However, an Advocate has not done anything and assessee came to know about the demand when has not done anything and assessee came to know about the demand when has not done anything and assessee came to know about the demand when has not done anything and assessee came to know about the demand when he received a letter from I.T. Dept. he received a letter from I.T. Dept. 2) 2. The ld. JCIT has rejected the above stated cause of the assessee for the 2. The ld. JCIT has rejected the above stated cause of the assessee for the 2. The ld. JCIT has rejected the above stated cause of the assessee for the 2. The ld. JCIT has rejected the above stated cause of the assessee for the reason stated in para 5.1.5 and stated that there is no reason stated in para 5.1.5 and stated that there is no reason stated in para 5.1.5 and stated that there is no reasonable cause for reasonable cause for delay in filing this appeal. The ld. JCIT has not considered the various delay in filing this appeal. The ld. JCIT has not considered the various delay in filing this appeal. The ld. JCIT has not considered the various delay in filing this appeal. The ld. JCIT has not considered the various case laws submitted by the assessee WHARE it has been held that the case laws submitted by the assessee WHARE it has been held that the case laws submitted by the assessee WHARE it has been held that the case laws submitted by the assessee WHARE it has been held that the assessee should not be suffered because negligence of tax consultant. The assessee should not be suffered because negligence of tax consultant. The assessee should not be suffered because negligence of tax consultant. The assessee should not be suffered because negligence of tax consultant. The order of the ld. order of the ld. JCIT has caused and hardship of the assessee and JCIT has caused and hardship of the assessee and JCIT has caused and hardship of the assessee and unjustified, illegal as the same is passed without considering judgements of unjustified, illegal as the same is passed without considering judgements of unjustified, illegal as the same is passed without considering judgements of unjustified, illegal as the same is passed without considering judgements of the Honourable Supreme Court in the matter of Mst. Katiji and Others the Honourable Supreme Court in the matter of Mst. Katiji and Others the Honourable Supreme Court in the matter of Mst. Katiji and Others the Honourable Supreme Court in the matter of Mst. Katiji and Others (167) ITR 471 (1988) SC 897. (167) ITR 471 (1988) SC 897. 3) Ground3. The various judicia Ground3. The various judicial rulings stated by the ld. JCIT are not l rulings stated by the ld. JCIT are not l rulings stated by the ld. JCIT are not applicable to the case of the assessee when the assessee as stated a applicable to the case of the assessee when the assessee as stated a applicable to the case of the assessee when the assessee as stated a applicable to the case of the assessee when the assessee as stated a reasonable cause for delay in filing the appeal. The ld. JCIT has rejected reasonable cause for delay in filing the appeal. The ld. JCIT has rejected reasonable cause for delay in filing the appeal. The ld. JCIT has rejected reasonable cause for delay in filing the appeal. The ld. JCIT has rejected application for condonation of delay based on the Supreme Court case o application for condonation of delay based on the Supreme Court case o application for condonation of delay based on the Supreme Court case of application for condonation of delay based on the Supreme Court case o late Prathapath Subba Reddy and Basawraj Special Leave Petition (Civil) late Prathapath Subba Reddy and Basawraj Special Leave Petition (Civil) late Prathapath Subba Reddy and Basawraj Special Leave Petition (Civil) late Prathapath Subba Reddy and Basawraj Special Leave Petition (Civil) No. 31248 of 2018, which is not applicable in the case of the assessee. 4. No. 31248 of 2018, which is not applicable in the case of the assessee. 4. No. 31248 of 2018, which is not applicable in the case of the assessee. 4. No. 31248 of 2018, which is not applicable in the case of the assessee. 4. The ld. JCIT has not considered the facts that the trust is carried on the The ld. JCIT has not considered the facts that the trust is carried on the The ld. JCIT has not considered the facts that the trust is carried on the The ld. JCIT has not considered the facts that the trust is carried on the Charitable activities and all t Charitable activities and all the trustees are working voluntarily without he trustees are working voluntarily without he trustees are working voluntarily without any remuneration and engaged in their personal jobs. 5. The order passed any remuneration and engaged in their personal jobs. 5. The order passed any remuneration and engaged in their personal jobs. 5. The order passed any remuneration and engaged in their personal jobs. 5. The order passed by the ld. JCIT in rejecting the application of condonation of delay is by the ld. JCIT in rejecting the application of condonation of delay is by the ld. JCIT in rejecting the application of condonation of delay is by the ld. JCIT in rejecting the application of condonation of delay is illegal, bad in law. 6. Any other grounds of appeal at the time of illegal, bad in law. 6. Any other grounds of appeal at the time of illegal, bad in law. 6. Any other grounds of appeal at the time of hearing hearing with prior permission of Honourable Bench. with prior permission of Honourable Bench. with prior permission of Honourable Bench.

3.

At the outset, Ld. Counsel for the assessee stated that Ld. CIT(A) grossly erred in At the outset, Ld. Counsel for the assessee stated that Ld. CIT(A) grossly erred in At the outset, Ld. Counsel for the assessee stated that Ld. CIT(A) grossly erred in At the outset, Ld. Counsel for the assessee stated that Ld. CIT(A) grossly erred in not condoning the delay in not condoning the delay in filing of the appeal in spite of filing of the appeal in spite of reasonable causes preventing the reasonable causes preventing the assessee which mainly mainly includes the inaction of earlier counsel of the assessee, earlier counsel of the assessee, medical edical treatment of wife of treatment of wife of secretary Mr. Srikanth M, Covid secretary Mr. Srikanth M, Covid-19 restriction from 2020-2022 and 2022 and also certain key employees of the assessee trust were effected from Corona. also certain key employees of the assessee trust were effected from Corona. also certain key employees of the assessee trust were effected from Corona. He also He also referred to the affid referred to the affidavit dated 16.03.2026 filed by the secretary. Thus prayer made to avit dated 16.03.2026 filed by the secretary. Thus prayer made to avit dated 16.03.2026 filed by the secretary. Thus prayer made to condone the delay in filing of the appeal before Ld. CIT(A). condone the delay in filing of the appeal before Ld. CIT(A). condone the delay in filing of the appeal before Ld. CIT(A).

4.

On the other hand, Ld. DR supported the order of ld. CIT(A) not condoning the On the other hand, Ld. DR supported the order of ld. CIT(A) not condoning the On the other hand, Ld. DR supported the order of ld. CIT(A) not condoning the On the other hand, Ld. DR supported the order of ld. CIT(A) not condoning the delay.

5.

I have heard rival contentions and perused the records placed before me. I have heard rival contentions and perused the records placed before me. I have heard rival contentions and perused the records placed before me. Ld. Ld. CIT(A) dismissed the assessee appeal for A.Y 2018 CIT(A) dismissed the assessee appeal for A.Y 2018- -19 being barred by limitation. I note 19 being barred by limitation. I note that the return of income for A.Y 2018 that the return of income for A.Y 2018-19 has been filed by the assessee on 31.03.2019 19 has been filed by the assessee on 31.03.2019 19 has been filed by the assessee on 31.03.2019 and CPC has processed the same u/s 143(1)(a) of the Act on 30.09.2019 declining claim nd CPC has processed the same u/s 143(1)(a) of the Act on 30.09.2019 declining claim nd CPC has processed the same u/s 143(1)(a) of the Act on 30.09.2019 declining claim nd CPC has processed the same u/s 143(1)(a) of the Act on 30.09.2019 declining claim of deduction / exemption u/s 11 of the Act for delay in filing the return. Against the order of deduction / exemption u/s 11 of the Act for delay in filing the return. Against the order of deduction / exemption u/s 11 of the Act for delay in filing the return. Against the order of deduction / exemption u/s 11 of the Act for delay in filing the return. Against the order of CPC dated 30.09.2019 the assessee has preferred the appeal before Ld. CIT( of CPC dated 30.09.2019 the assessee has preferred the appeal before Ld. CIT( of CPC dated 30.09.2019 the assessee has preferred the appeal before Ld. CIT(A) on A) on 04.07.2025. Reasons for the huge delay are explained in detail in the affidavit dated 04.07.2025. Reasons for the huge delay are explained in detail in the affidavit dated 04.07.2025. Reasons for the huge delay are explained in detail in the affidavit dated 04.07.2025. Reasons for the huge delay are explained in detail in the affidavit dated 11.03.2026 given by secretary. All the reasons mentioned in this affidavit have been 11.03.2026 given by secretary. All the reasons mentioned in this affidavit have been 11.03.2026 given by secretary. All the reasons mentioned in this affidavit have been 11.03.2026 given by secretary. All the reasons mentioned in this affidavit have been stated by it counsel for the assessee in the course of hearing. I note that stated by it counsel for the assessee in the course of hearing. I note that stated by it counsel for the assessee in the course of hearing. I note that the delay is not the delay is not intentional and assessee intentional and assessee would not have gained anything from anything from delaying the appeal. I note delaying the appeal. I note that the Covid -19 pandemic is one of the major reason 19 pandemic is one of the major reason 19 pandemic is one of the major reason for delay which was further added for delay which was further added by the medical treatment of key persons and their family members. by the medical treatment of key persons and their family members. by the medical treatment of key persons and their family members. I therefore adopting a therefore adopting a justice oriented apporach justice oriented apporach placing reliance on the judgment of placing reliance on the judgment of Hon’ble Apex Court in the Hon’ble Apex Court in the case of Collector, Land Acquision, Anantnag case of Collector, Land Acquision, Anantnag & Anr. Vs. Mst. Katiji & Ors. Reported in & Anr. Vs. Mst. Katiji & Ors. Reported in & Anr. Vs. Mst. Katiji & Ors. Reported in (1987) 2 SCC 107 (1987) 2 SCC 107 and in the case of Inder Singh Vs. State of Madhya Pradesh judgment Inder Singh Vs. State of Madhya Pradesh judgment Inder Singh Vs. State of Madhya Pradesh judgment dated 21.03.2025 (2025 INSC 382) dated 21.03.2025 (2025 INSC 382), condone the delay in filing the appeal before ld. condone the delay in filing the appeal before ld. condone the delay in filing the appeal before ld. CIT(A).

6.

Though the assessee has raised Though the assessee has raised all the three grounds of the three grounds of appeal on the action of Ld. of Ld. CIT(A) not condoning the delay condoning the delay in filing the appeal in filing the appeal. However during the course of . However during the course of hearing ld. Counsel for the assessee also submitted that on merits hearing ld. Counsel for the assessee also submitted that on merits hearing ld. Counsel for the assessee also submitted that on merits a very small issue has has been raised where the benefit of S where the benefit of Section 11 denied solely for delay in filing the return. ection 11 denied solely for delay in filing the return. ection 11 denied solely for delay in filing the return. Reference made to the CBDT Circular dated 23.04.2019 is to the CBDT Circular dated 23.04.2019 is to the CBDT Circular dated 23.04.2019 is stating that prior to the that prior to the amendment brought in Sec. 12A(1)(ba) effective from 01.04.2023, the benefit u/s 11 is amendment brought in Sec. 12A(1)(ba) effective from 01.04.2023, the benefit u/s 11 is amendment brought in Sec. 12A(1)(ba) effective from 01.04.2023, the benefit u/s 11 is amendment brought in Sec. 12A(1)(ba) effective from 01.04.2023, the benefit u/s 11 is available to the assessee if r available to the assessee if return is filed within the time allowed u/s 139 of the Act and eturn is filed within the time allowed u/s 139 of the Act and eturn is filed within the time allowed u/s 139 of the Act and since assessee’s return has been filed before the expiry the due date provided for since assessee’s return has been filed before the expiry the due date provided for since assessee’s return has been filed before the expiry the due date provided for belated belated return, assessee claim of return, assessee claim of deduction u/s 11 deserves to be allowed. to be allowed.

7.

On the other hand ld. DR supported t On the other hand ld. DR supported the order of ld. CIT(A) and oppose to allowing he order of ld. CIT(A) and oppose to allowing he order of ld. CIT(A) and oppose to allowing the benefit of sec 11 of the Act. the benefit of sec 11 of the Act.

8.

I have heard I have heard the rival contentions and perused the records placed before me. the rival contentions and perused the records placed before me. the rival contentions and perused the records placed before me. Considering the arguments made by the ld. Counsel of the assessee onsidering the arguments made by the ld. Counsel of the assessee onsidering the arguments made by the ld. Counsel of the assessee during the course of during the course of hearing and even hearing and even though specific grounds has not been raised, however considering the been raised, however considering the been raised, however considering the fact that the issue is very s the issue is very small and it will take considerable and it will take considerable time for the lower authorities time for the lower authorities to adjudicate the issue, I deem it appropriate to dec to adjudicate the issue, I deem it appropriate to dec to adjudicate the issue, I deem it appropriate to decide on merits of the case in order to order to follow the motto of th follow the motto of this Tribunal i.e Impartial, Easy and Speedy Justice. Impartial, Easy and Speedy Justice.

9.

I find that the return of income for A.Y 2018 I find that the return of income for A.Y 2018 I find that the return of income for A.Y 2018-19 has been filed by the assessee on 19 has been filed by the assessee on 31.03.2019 and it is within the time allowed u/s 139(4) of th 31.03.2019 and it is within the time allowed u/s 139(4) of th 31.03.2019 and it is within the time allowed u/s 139(4) of the Act and undisputedly the e Act and undisputedly the return has not been filed within the time prescribed u/s 139 of the Act. I observe that the been filed within the time prescribed u/s 139 of the Act. I observe that the been filed within the time prescribed u/s 139 of the Act. I observe that the been filed within the time prescribed u/s 139 of the Act. I observe that the controversy has arise arised because in Section 139(4A) of the act there is reference of filing ) of the act there is reference of filing ) of the act there is reference of filing the return within the the return within the due date prescribed u/s 139(1) of the Act. However the 139(1) of the Act. However the trust is trust is registered u/s 12A of the Act and the same provides the condition for allowing the benefit registered u/s 12A of the Act and the same provides the condition for allowing the benefit registered u/s 12A of the Act and the same provides the condition for allowing the benefit registered u/s 12A of the Act and the same provides the condition for allowing the benefit of Sec. 11 of the Act. U/s 12A of the Act there is only reference of filing the return of Sec. 11 of the Act. U/s 12A of the Act there is only reference of filing the return of Sec. 11 of the Act. U/s 12A of the Act there is only reference of filing the return of Sec. 11 of the Act. U/s 12A of the Act there is only reference of filing the return within the time prescribed u/s 139 o within the time prescribed u/s 139 of the Act and it is only after the amendment brought f the Act and it is only after the amendment brought f the Act and it is only after the amendment brought from 01.04.2023 that the specific mention is there from 01.04.2023 that the specific mention is there of Sec. 139 of Sec. 139(4) and Sec. 139(1) of the (4) and Sec. 139(1) of the Act. Thus it makes it clear that even if the return is filed before the expiry of due for Thus it makes it clear that even if the return is filed before the expiry of due for Thus it makes it clear that even if the return is filed before the expiry of due for Thus it makes it clear that even if the return is filed before the expiry of due for filing the belated ret filing the belated return the assessee is entitled to benefit of Sec. 11 urn the assessee is entitled to benefit of Sec. 11. This aspect has also s aspect has also been considered by CBDT vide intimation F.No. 179/ been considered by CBDT vide intimation F.No. 179/ been considered by CBDT vide intimation F.No. 179/193/2019-ITA-I dated 23.04.2019. I dated 23.04.2019. The CBDT has issued clarification with regard to the time allowed for filing of return of he CBDT has issued clarification with regard to the time allowed for filing of return of he CBDT has issued clarification with regard to the time allowed for filing of return of he CBDT has issued clarification with regard to the time allowed for filing of return of income subsequent to the in subsequent to the insertion of clause 12(A)(ba) of the Act. clause 12(A)(ba) of the Act.

10.

I have gone through circular and find that the benefit of Sec. 11 is available to the I have gone through circular and find that the benefit of Sec. 11 is available to the I have gone through circular and find that the benefit of Sec. 11 is available to the I have gone through circular and find that the benefit of Sec. 11 is available to the assessee if the return has been filed within the time allowed u/s 139 of the Act. Therefore assessee if the return has been filed within the time allowed u/s 139 of the Act. Therefore assessee if the return has been filed within the time allowed u/s 139 of the Act. Therefore assessee if the return has been filed within the time allowed u/s 139 of the Act. Therefore since assessee has furnished the return of income for A.Y 2018 s furnished the return of income for A.Y 2018 s furnished the return of income for A.Y 2018-19 on 31.03.2019 which 19 on 31.03.2019 which is well within the time limit prescribed is well within the time limit prescribed u/s 139 of the Act, u/s 139 of the Act, the assessee’s claim of he assessee’s claim of deduction u/s 11 of the act at Rs. 14,52,301/ deduction u/s 11 of the act at Rs. 14,52,301/- deserves to be allowed. deserves to be allowed. Thus finding of Ld. inding of Ld. CIT(A) is set aside and assessee’s claim of deduction u/s 11 of the Act of Rs. 14,52,301/ A) is set aside and assessee’s claim of deduction u/s 11 of the Act of Rs. 14,52,301/ A) is set aside and assessee’s claim of deduction u/s 11 of the Act of Rs. 14,52,301/- A) is set aside and assessee’s claim of deduction u/s 11 of the Act of Rs. 14,52,301/ is allowed. Impugned addition Impugned addition / disallowance is deleted / disallowance is deleted. Grounds of appeal raised by the ed by the assessee are allowed. assessee are allowed.

11.

In the result, the appeal filed by the assessee is all In the result, the appeal filed by the assessee is all In the result, the appeal filed by the assessee is allowed.

Order pronounced in the open court on Order pronounced in the open court on 14.05. .2026

Sd/- MANISH BORAD ACCOUNTANT MEMBER Nagpur Dated: 14.05.2026 6 Copy to: DR HEDGEWAR JANMASHATABDI SEWA DR HEDGEWAR JANMASHATABDI SEWA SAMITI, 1 M G ROAD, LAXMAN SMRUTI, TAJNA 1 M G ROAD, LAXMAN SMRUTI, TAJNA 1 PETH, AKOLA PETH, AKOLA, AKOLA-444001, 444001, MAHARASHTRA MAHARASHTRA ITO WARD -2 2 (EXEMPTION), 2 BSNL RTTC BUILDING SEMINARI HILLS BSNL RTTC BUILDING SEMINARI HILLS, NAGPUR-440006, MAHARASHTRA 440006, MAHARASHTRA 3 THE PCIT / CIT THE PCIT / CIT, 4 THE D.R., ITAT, , ITAT, NAGPUR BENCH 5 GUARD FILE

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