HANNA BHAVAN OLDAGE CHARITABLE SOCIETY,KOTTAYAM vs. ITO, EXEMPTION WARD, KOTTAYAM

Brief facts of the case are that assessee is a charitable society running an old age home at Pulikattissery, Kottayam. The assessee was granted registration u/s. 12AA of the Income Tax Act, 1961 (for Hanna Bhavan Oldage Charitable Society short, 'the Act') on 10/03/2021 w.e.f. 2021-22. The return of income for the AY 2020-21 was filed on 24/03/2024 after claiming exemption u/s. 11 of the Act. The said return of income was processed by the CPC u/s. 143(1) vide intimation dated 30/11/2021 by denying exemption u/s. 11 on the ground that return of income was filed belatedly. The assessee filed an application u/s. 154 of the Act, the same was rejected vide order dated 23/08/2022.

Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO.

Being aggrieved, the assessee is in appeal before the Tribunal in the present appeal.

I find that filing of return of income within the due date prescribed u/s. 139(1) of the Act is a condition precedent for claiming exemption u/s. 11 of the Act. Admittedly, the assessee had filed the return of income belatedly and, therefore, the CPC had rightly denied the exemption u/s. 11 of the Act, however, I made it clear, assessee is at liberty to move a petition for condonation of delay in filing the return of income before the Central Board of Direct Taxes (CBDT) u/s. 119(2)(b) of the Act. Thus, the appeal filed by the assessee is dismissed with the aforesaid liberty.