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Facts
The assessee challenged the denial of exemption under sections 11 & 12 of the Income Tax Act by the Ld. CIT(A), which was based on the alleged belated filing of the Audit Report in Form No.10B and the return of income beyond the due date prescribed under section 139(1) for AY 2018-19. The Ld. CIT(A) noted that while the original due date was 30.09.2018, the assessee filed on 29.10.2018, thereby forfeiting benefits. The assessee contended that a CBDT order dated 08.10.2018 extended the due date to 31.10.2018.
Held
The Tribunal held that the CBDT order dated 08.10.2018 had indeed extended the due date for filing the return of income and Audit Report for AY 2018-19 to 31.10.2018. Since the assessee filed on 29.10.2018, there was no lapse in compliance with the provisions of the Act. Therefore, the Ld. CIT(A)'s action in denying the exemption was contrary to the statutory position, and the CPC/JAO was directed to re-evaluate the eligibility considering the extended due date.
Key Issues
Whether exemption under sections 11 & 12 of the Income Tax Act can be denied if the return of income and audit report are filed within an extended due date provided by a CBDT order, even if after the original due date. Whether an intimation order passed under section 143(1) is valid when it disregards an extended compliance date.
Sections Cited
11, 12, 143(1), 139(1), 250, 119
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL
Before: SHRI MAHAVIR SINGH & SHRI MAHAVIR SINGH & SHRI MAHAVIR SINGH & SHRI PRADIP KUMAR KEDIASHRI PRADIP KUMAR KEDIASHRI PRADIP KUMAR KEDIA
The instant appeal has been filed at the instance of The instant appeal has been filed at the instance of the assessee seeking assessee seeking to assail the First Appellate order dated 20.05.2024 passed by Ld. to assail the First Appellate order dated 20.05.2024 passed by Ld. to assail the First Appellate order dated 20.05.2024 passed by Ld. Commissioner of Income Tax (A)/ADDL/JCIT(A) Commissioner of Income Tax (A)/ADDL/JCIT(A)-2, Pune [“Ld.CIT(A)”] u/s 250 2, Pune [“Ld.CIT(A)”] u/s 250 of the Income Tax Act, 1961 [“the Act”] pertaining to 1961 [“the Act”] pertaining to Assessment Year 201 Assessment Year 2018- 19.
The grounds of appeal
raised by the assessee read as under: The grounds of appeal raised by the assessee read as under:- The grounds of appeal raised by the assessee read as under: 1. “That having regard to the facts and circumstances of the case, Ld. “That having regard to the facts and circumstances of the case, Ld. “That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts, in confirming the act CIT(A) has erred in law and on facts, in confirming the action of Ld. CIT(A) has erred in law and on facts, in confirming the act DCIT CPC in not allowing the benefit of exemption u/s 11&12 Of the DCIT CPC in not allowing the benefit of exemption u/s 11&12 Of the DCIT CPC in not allowing the benefit of exemption u/s 11&12 Of the Income Tax Act, more so when assessee has complied with all the Income Tax Act, more so when assessee has complied with all the Income Tax Act, more so when assessee has complied with all the necessary conditions in this regard and has further erred in denying necessary conditions in this regard and has further erred in denying necessary conditions in this regard and has further erred in denying the said exemption and that too by recording the said exemption and that too by recording incorrect facts and incorrect facts and findings and in violation of principles of natural justice. findings and in violation of principles of natural justice. findings and in violation of principles of natural justice.
2. That in any case and any in view of the matter, action of Ld. CIT(A) That in any case and any in view of the matter, action of Ld. CIT(A) That in any case and any in view of the matter, action of Ld. CIT(A) in confirming the action of Ld. DCIT CPC in not allowing the in confirming the action of Ld. DCIT CPC in not allowing the in confirming the action of Ld. DCIT CPC in not allowing the ITA.No. .No.3330/Del/2024 [Sufi Kathak Foundation Sufi Kathak Foundation] exemption U/s 11&12 of the Income Tax Act, exemption U/s 11&12 of the Income Tax Act, is bad in law and is bad in law and against the fact and circumstances of the case. against the fact and circumstances of the case.
3. That having regard to the facts and circumstances of the case, Ld. That having regard to the facts and circumstances of the case, Ld. That having regard to the facts and circumstances of the case, Ld. CIT(A) ought to have quashed the impugned intimation order passed CIT(A) ought to have quashed the impugned intimation order passed CIT(A) ought to have quashed the impugned intimation order passed by Ld. DCIT CPC u/s 143(1) as the subject issue is by Ld. DCIT CPC u/s 143(1) as the subject issue is outside the by Ld. DCIT CPC u/s 143(1) as the subject issue is purview of section 143 (1) of the Act.” purview of section 143 (1) of the Act.”
As per grounds of appeal, the assessee has challenged the denial of As per grounds of appeal, the assessee has challenged the denial of As per grounds of appeal, the assessee has challenged the denial of exemption under section 11 & 12 of the exemption under section 11 & 12 of the Act owing to alleged delay in filing owing to alleged delay in filing Audit Report in Form No.10B and also for belated filing o Audit Report in Form No.10B and also for belated filing of return of income f return of income beyond the due date prescribed under section 139(1) of the Act for the the due date prescribed under section 139(1) of the Act for the the due date prescribed under section 139(1) of the Act for the Assessment Year 218-19 in question. 19 in question.
The assessee filed return of income for AY 2018 The assessee filed return of income for AY 2018-19 on 29.10.2018 which 19 on 29.10.2018 which is alleged to be beyond due date prescribed under sectio due date prescribed under section 139(1) of the Act. n 139(1) of the Act. The Ld.CIT(A) has also alleged that the appellant society has also filed the The Ld.CIT(A) has also alleged that the appellant society has also filed the The Ld.CIT(A) has also alleged that the appellant society has also filed the Audit Report in Form No.10B for claiming exemption under section 11 Audit Report in Form No.10B for claiming exemption under section 11 Audit Report in Form No.10B for claiming exemption under section 11 pertaining to AY 2018-19 on 29.10.2018. The Ld.CIT(A) thus, upheld the action 19 on 29.10.2018. The Ld.CIT(A) thus, upheld the action 19 on 29.10.2018. The Ld.CIT(A) thus, upheld the action of Centralized Processing Cent Processing Center (“CPC”) in denying the benefit under section r (“CPC”) in denying the benefit under section 11 & 12 of the Act on the ground that 11 & 12 of the Act on the ground that benefit can only be a can only be availed if the assessee has filed the return of income and also the Audit Report within due assessee has filed the return of income and also the Audit Report within due assessee has filed the return of income and also the Audit Report within due date as specified under section nder section 139(1) of the Act. The Ld.CIT(A) observed that ) of the Act. The Ld.CIT(A) observed that the due date for furnishing return of income and Audit Report was the due date for furnishing return of income and Audit Report was the due date for furnishing return of income and Audit Report was 30.09.2018. However, the assessee has filed these documents 30.09.2018. However, the assessee has filed these documents belatedly on 30.09.2018. However, the assessee has filed these documents 29.10.2018 and consequently 29.10.2018 and consequently, has forfeited benefits available under available under section 11 & 12 of the Act.
In this regard, it is the contention of the assessee that in exercise of In this regard, it is the contention of the assessee that in exercise of In this regard, it is the contention of the assessee that in exercise of power conferred under section 119 of the Act, the CBDT vide order dated power conferred under section 119 of the Act, the CBDT vide order dated power conferred under section 119 of the Act, the CBDT vide order dated 08.10.2018 had granted extension of due date for the purposes of filing of 08.10.2018 had granted extension of due date for the purposes of filing of 08.10.2018 had granted extension of due date for the purposes of filing of return of income as well as various reports of audits pertaining to AY 2018 income as well as various reports of audits pertaining to AY 2018-19 income as well as various reports of audits pertaining to AY 2018 upto 31.10.2018. Thus, Thus, Thus, in in in terms terms terms of of of the the the CBDT CBDT CBDT order order order Page | 2
ITA.No. .No.3330/Del/2024 [Sufi Kathak Foundation Sufi Kathak Foundation] No.F.No.225/358/2018/ITA. No.F.No.225/358/2018/ITA.II dated 08.10.2018, the due date for the purposes dated 08.10.2018, the due date for the purposes of the return of income as well as the filing of Audit Re of the return of income as well as the filing of Audit Report under Form port under Form No.10B is to be reckoned as 31.10.2018. Consequently, no lapse has occurred 10B is to be reckoned as 31.10.2018. Consequently, no lapse has occurred 10B is to be reckoned as 31.10.2018. Consequently, no lapse has occurred on the part of the assessee in compliance of the provisions of the Act has on the part of the assessee in compliance of the provisions of the Act has on the part of the assessee in compliance of the provisions of the Act has wrongly alleged.
This being so, the action of the Ld.CIT(A) in denying the benefit o the action of the Ld.CIT(A) in denying the benefit on such the action of the Ld.CIT(A) in denying the benefit o ground is contrary to the statutory position and th o the statutory position and thus requires to be set aside s requires to be set aside and cancelled. The CPC and cancelled. The CPC/JAO is directed to substitute and consi is directed to substitute and consider the extended due date afresh for afresh for determination of eligibility of claim under section of claim under section 11 & 12 of the Act.
In the result, the appeal of the assessee is allowed. In the result, the appeal of the assessee is allowed.