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Facts
The assessee, Laxmi Foundation, filed its return of income for AY 2018-19 on 22/03/2019, claiming exemption under section 11 of the Income Tax Act. The due date for filing the ITR along with the audit report in Form-10B was 30/09/2018. The AO rejected the claim because the audit report was not e-filed along with the return of income within the prescribed time limit.
Held
The Tribunal noted that the assessee had not filed its return of income within the prescribed due date under section 139(1) of the Act. However, the assessee has filed a representation before the CIT(E) to condone the delay, which is yet to be decided.
Key Issues
Whether the assessee is eligible for exemption under section 11 of the Income Tax Act when the audit report was not filed within the prescribed time limit, and if the matter requires an administrative solution.
Sections Cited
11, 12A(1)(b), 12(2), 119(2)(b), 139(1), 143(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI SATBEER SINGH GODARA & SHRI MANOJ KUMAR AGGARWAL
ORDER
Per Satbeer Singh Godara, Judicial Member:
This assessee’s appeal for assessment year 2018-19, arises against the Commissioner of Income Tax (Appeals)-National Faceless Appeal Centre [in short, the “CIT(A)-NFAC”],Delhi’s DIN and order no.
ITBA/NFAC/S/250/2022-23/1051212855(1) dated 24.03.2023, involving proceedings under section 143(1) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties at length. Case file perused.
It transpires at the outset that both the learned lower authorities have disallowed the assessee’s claim of section 11 exemption; in the course of section 143(1) processing dated 20.03.2020 as upheld in the impugned lower appellate discussion reading as follows :
“5. Decision: After carefully going through the facts of the case, intimation order under section 143(1) of the Income Tax Act, 1961 and the material on record, the grounds of appeals adjudication is as follows: 5.1 Assessee filed his return of income for A.Y.2018-19 on 22/03/2019 claiming exemption under section 11 of the income tax act. Due date for filing the ITR along with audit report in Form-10B for the relevant assessment year was 30/09/2018. The AO, CPC, Banaglore rejected the claim of the assessee stating that as per section 12A(1)(b) of Income tax Act read with first Proviso to Rule 12(2) of the Income Tax Rules, where total income of the trust or institution without giving effect to the provisions of section 11 and section 12 exceeds the maximum amount which is not chargeable to income tax, the audit report has to be E-filled along with the return of Income. Since assessee had not E- filled ITR along with the audit report in Form-106 along with or before filing of return of income, the exemption u/s.11 was not allowed. 5.2. AO rejected the assessee claim on the ground that the assessee did not file Audit report in Form 108 within the limit prescribed under the act. AO is within his right to reject claim which do not full fill statutory provisions of the Act. 5.3 Remand report also sought from the AO seeking basis of addition in the assessee case. AO in his remand report explained the reasons for not granting exemption under section 11 of the I.T. Act. This has been considered. 5.5 Further, the Act prescribes remedy u/s 119(2)(b) of the Income Tax Act, 1961. The assessee may opt for such remedy and may apply for consideration before prescribed authorities. The provisions do not empower CIT(A) to grant such relief. 5.6 On the facts and circumstances of the case, the grievance of the assessee requires an administrative solution and cannot be resolved by appellate proceedings, as far as late filing of ITR is concerned. 5.7 Hence, in consideration of the facts of the case and written submission by the assessee, the appeal is dismissed.”
Suffice to say, it has come record that the assessee had not filed its return of income within the prescribed due date u/s. 139(1) of the Act. 2 | P a g e Learned DR draws our attention to the clinching fact that the assessee had to file return upto 31.10.2018, but it chose to submit the same on 22.03.2019.
Learned counsel at this stage submits that the assessee has filed it’s representation before the prescribed authority, i.e. CIT(E) concerned, to condone the above delay and the same is yet to be decided. That being the case, we restore the assessee’s instant appeal back to the CIT(Appeals)/NFAC, to await the final outcome of the foregoing representation. Ordered accordingly.
This assessee’s appeal is partly allowed for statistical purposes. Order pronounced in the open court on 13THFebruary, 2025.
Sd/- Sd/- (MANOJ KUMAR AGGARWAL) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 13THFebruary, 2025. *aks/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra
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