Loading judgment…
Facts
The assessee, a Trust registered u/s 12A, filed its original 'Nil' return for AY 2017-18 without Form 9A but subsequently filed a revised return on 20.01.2018 along with Form 9A. The exemption claimed u/s 12AA was denied by CPC, leading to an addition of Rs. 42,00,000/-, which was confirmed by the CIT(A). The assessee has also filed an application u/s 119 for condonation of delay in filing Form 9A, which is currently pending before the PCIT.
Held
The Tribunal restored the issue back to the Assessing Officer (AO) to await the decision on the assessee's pending application under Section 119 of the Act for condonation of delay in filing Form 9A. Upon disposal of the said application by the competent authority, the AO is directed to pass an order in accordance with law.
Key Issues
Denial of exemption under section 12A/12AA due to belated filing of Form 9A with the revised return instead of the original return, when an application for condonation of delay under section 119 is pending.
Sections Cited
12A, 12AA, 143(1), 11(1)(a), 11(1)(b), 139(1), 119
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “SMC”, DELHI
Before: SHRI VIKAS AWASTHY
बनाम Vs. Income Tax Officer, Exemption Ward, ..... �ितवादी/Respondent Faridabad Haryana अपीलाथ� �ारा/ Appellant by : None �ितवादी�ारा/Respondent by : Ms. Shivani Bansal , Sr. DR सुनवाई क� ितिथ/ Date of hearing : 10/09/2024 घोषणा क� ितिथ/ Date of pronouncement : : 28/11/2024 आदेश/ORDER
PER VIKAS AWASTHY, JM:
This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), Additional/Joint Commissioner of Income Tax (Appeals)- 10, Mumbai (hereinafter referred to as 'the CIT(A)') dated 05.01.2024, for assessment year 2017-18.
The solitary issue in this appeal is against addition of Rs.42,00,000/- for non filing of Form 9A along with the return of income. The facts of the case as emanating from documents on record are: The assessee is a Trust Registered u/s. 12A of the Income Tax Act, 1961 (hereinafter referred to as 'the Act’). The assessee filed its original return of income on 07.11.2017 declaring total income as ‘Nil’. The assessee filed revised return of income on 20.01.2018 along with Form No. 9A. The exemption claimed by the assessee u/s. 12AA of the Act was denied by CPC, Bangalore while processing return of income as Form No. 9A was not filed along with the original return of income. Aggrieved, by the intimation dated 25.03.2019 u/s. 143(1) of the Act, the assessee filed appeal before the CIT(A). The CIT(A) rejected assessee’s contention and confirmed the addition. Hence, present appeal by the assessee.
Ms. Shivani Bansal, representing the department vehemently supported the order of CIT(A) and prayed for dismissing appeal of the assessee. She further place reliance on the decisions of Hon’ble Apex Court in the case of PCIT vs. Wipro Ltd. in Civil Appeal No. 7620/2021 decided on 11.07.2022.
Submissions made by ld. DR heard and orders of the authorities below examined. The solitary reason for denying benefit of section 12A of the Act to assessee is non filing of Form No. 9A along with the return of income. Though, the same was filed along with revised return of income on 20.01.2018. The requirement of filing Form No. 9A is mandatory. The assessee is required to file Form 9A where it fails to apply 85% of its income referred to in section 11(1)(a) or (b) of the Act and accumulates the deficit to be applied in the next financial year or in the year of receipt of income. Further, Rule 17 requires that Form 9A shall be furnished before the expiry of time allowed u/s. 139(1) for furnishing the return of income for relevant assessment year. In the instant case, the assessee has filed Form 9A belatedly along with the revised return of income. The assessee has filed an application u/s. 119 of the Act for condoning delay in filing Form 9A before the PCIT, Chandigarh. The said application is still stated to be pending for disposal.
Considering the fact that aforesaid application u/s. 119 of the Act is pending for disposal the issue in appeal is restored to the AO to wait the decision on the said application. After the disposal of application by the competent authority, the AO shall pass the order, in accordance with law.
In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on Thursday the 28th day of November, 2024. Sd/- Sd/- (VIKAS AWASTHY) �याियक सद�य/JUDICIAL MEMBER िद�ी/Delhi, �दनांक/Dated 28/11/2024 NV/- �ितिलिप अ�ेिषतCopy of the Order forwarded to : अपीलाथ�/The Appellant , 1. 2. �ितवादी/ The Respondent. 3. The PCIT िवभागीय �ितिनिध, आय.अपी.अिध., िद�ी /DR, ITAT, िद�ी 4. गाड� फाइल/Guard file. 5. BY ORDER, //True Copy//