Section 119(2) of the Income Tax Act

Income-tax Act, 2025: s.239

Section 119(2) falls under section 119 of the Income-tax Act, 1961, which corresponds to section 239 (Instructions to subordinate authorities) of the Income-tax Act, 2025.

Read section 239 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 119(2) is CIT v. Britannia Industries Ltd. (280 ITR 525), cited in 67 of the 74 judgments on BharatTax that turn on this section.

Leading authorities on Section 119(2)

CIT v. Britannia Industries Ltd.
280 ITR 525 · 2006 · High Court
67
citing judgments

When an assessee has both borrowed funds and sufficient interest-free own funds, and makes interest-free advances, it is presumed that the advances were made from the own funds, and no interest disallowance is made under Section 36(1)(iii) on the borrowed funds.

CIT v. Kotak Mahendra Finance Ltd.
265 ITR 119 · 2004 · High Court
59
citing judgments

Interest levied under Sections 234A, 234B, and 234C of the Income-tax Act is compensatory in nature, not penal. This interest is automatically imposed upon default in payment of advance tax.

CIT v. Salem Agricultural Producers Co-operative Marketing Society Ltd.
76 Taxmann.com 225 · 2016 · High Court
8
citing judgments
Little Angels Education Society v. Union of India
127 Taxmann.com 473 · 2021 · High Court
7
citing judgments
CIT v. Malayala Manorama Co. Ltd.
114 Taxmann.com 88 · 2020 · ITAT
4
citing judgments
CIT v. Rajasthan
43 Taxmann.com 175 · 2014 · Reported
4
citing judgments

Judgments on Section 119(2)

Sri Akshiya Shiradi Saibaba Trust, Pondcherry vs. ITO, Pondicherry

In the result, appeal filed by the assessee is allowed for statistical purposes

ITA 198/CHNY/2025[2021-22]Status: DisposedITAT Chennai04 Jul 2025AY 2021-22

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr.P.M.Kathir, Advocate for Mr.T.Vasudevan, AdvocateFor Respondent: Ms.Anitha, Addl.CIT
Section 11Section 12A(1)(b)Section 139(1)Section 143(1)Section 154Section 250

Universal Cables Limited, Kolkata vs. A.C.I.T., Circle-6(1), Kolkata

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

ITA 53/KOL/2025[2017-18]Status: DisposedITAT Kolkata12 Jun 2025AY 2017-18

Bench: Shri Duvvuru Rl Reddy(Kz) & Shri Rakesh Mishra

Section 119(2)Section 143(3)Section 250Section 43B

Salt Lake Sanskritik Sansad, Kolkata vs. DCIT, Circle CPC, Bengaluru

In the result, the appeal of the assessee is allowed

ITA 40/KOL/2025[2023-24]Status: DisposedITAT Kolkata30 May 2025AY 2023-24

Bench: Shri Duvvuru Rl Reddy, Vice-(Kz) I.T.A. No. 40/Kol/2025 Assessment Year: 2023-2024 Salt Lake Sanskritik Sansad,…………...……Appellant Sector-1, Trust Bhawan, Ca-49, Salt Lake, Kolkata-700064, West Bengal [Pan:Aaets4162K] -Vs.- Deputy Director Of Income Tax,................Respondent Circle Cpc, Bengaluru, Prestige Alpha, Post Bag No. 2, Electronic City Post, Hosur Road, Bangalore-560 100, Karnataka Appearances By: Shri N. Kausic, A.R., Appeared On Behalf Of The Assessee Shri Kallol Mistry, Jcit, Sr. D.R., Appeared On Behalf Of The Revenue Date Of Concluding The Hearing: April 23, 2025 Date Of Pronouncing The Order: May 30, 2025 O R D E R

Section 11Section 11(2)Section 119(2)Section 119(2)(b)Section 12ASection 139Section 139(1)Section 143(1)Section 2

Sudarshan De, New Delhi vs. DCIT, Circle-2(1)(1), Ghaziabad

In the result, the Appeal of the Assessee is allowed

ITA 5177/DEL/2024[2018-19]Status: DisposedITAT Delhi30 May 2025AY 2018-19

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwalsudarsan De Vs. Dcit C/O. C S Anand, Advocate Circle-2(1)(1), B-81, First Floor, (Part B), Ghaziabad Defence Colony, Bhishma Pitamah Marg, New Delhi Pan: Abdpd3749F Appellant Respondent Assessee By Advocate C.S. Anand & Advocate Vaishnavi Yadav Revenue By Sh. Manish Gupta, Sr. Dr Date Of Hearing 26/05/2025 Date Of Pronouncement 30/05/2025 Order Per Yogesh Kumar, U.S. Jm:

Section 119(2)Section 147Section 270A

Up Government Employees Welfare, Lucknow vs. ACIT-2, Lucknow

ITA 745/LKW/2024[2013-14]Status: DisposedITAT Lucknow14 May 2025AY 2013-14

Bench: Shri Kul Bharat & Shri Nikhil Choudhary

For Appellant: NoneFor Respondent: Shri Manu Chaurasia, CIT(DR)
Section 119(2)Section 124Section 139Section 139(5)Section 143(1)Section 154Section 226(3)Section 250

Sant Kirpal Vidyak Mission, Ludhiana vs. ITO (Exemption), Chandigarh

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 561/CHANDI/2022[2017-18]Status: DisposedITAT Chandigarh02 May 2025AY 2017-18

Bench: Sh. Laliet Kumar Hon'Ble & Sh. Krinwant Sahay, Hon'Ble(Physical Hearing)

Section 12ASection 143(3)Section 154Section 250

West End Co Operative Housing Society Limited, Mumbai vs. ITO Ward 41(1)(5), Mumbai

In the result, the grounds of appeal raised by the assessee are allowed for statistical purpose

ITA 1426/MUM/2025[2020-21]Status: DisposedITAT Mumbai24 Apr 2025AY 2020-21

Bench: The Due Date Of Furnished Return Of Income Under Section 139 (1) Of L.T.Act. (Ii) Return Of Income For A.Y.2022-23 Filed On 31-10-2023 Though The Return Was Uploaded In Computer For Necessary Submission On 24-09-2022 But Due To Website Problem The Same Remain Unfiled When The Return For A.Y.2023-24 Was Under Process Of Submission, It Was Observed That Return Form A.Y.2022-23 Remain Unfiled, Immediately Return Was Filed. Shree 1008, Shantinath Digamber Jain Trust

Section 11Section 11(2)Section 119(2)Section 12ASection 13Section 139Section 139(1)Section 143(1)Section 2Section 250

Shree 1008, Shantinath Digamber Jain Trust, Mumbai vs. ITO (Exem) -2(3), Mumbai

In the result, the grounds of appeal raised by the assessee are allowed for statistical purpose

ITA 1244/MUM/2025[2022-23]Status: DisposedITAT Mumbai23 Apr 2025AY 2022-23

Bench: The Due Date Of Furnished Return Of Income Under Section 139 (1) Of L.T.Act. (Ii) Return Of Income For A.Y.2022-23 Filed On 31-10-2023 Though The Return Was Uploaded In Computer For Necessary Submission On 24-09-2022 But Due To Website Problem The Same Remain Unfiled When The Return For A.Y.2023-24 Was Under Process Of Submission, It Was Observed That Return Form A.Y.2022-23 Remain Unfiled, Immediately Return Was Filed. Shree 1008, Shantinath Digamber Jain Trust

Section 11Section 11(2)Section 119(2)Section 12ASection 13Section 139Section 139(1)Section 143(1)Section 2Section 250

Kn Krishnamurthy, Mumbai vs. Mum-W-(432)(93), Bengaluru

ITA 5609/MUM/2024[2023-24]Status: DisposedITAT Mumbai15 Apr 2025AY 2023-24

Bench: Shri Sandeep Gosain (Jm) & Shri Omkareshwar Chidara (Am) K.N. Krishnamurthy Ito 42(2)(3) I-15, Mahindra Park Mumbai. Narayan Nagar, Lbs Vs. Marg, Ghatkopar West Mumbai-400 086. Pan : Aaepk7294A Appellant Respondent

For Appellant: Shri Hemanshu JoshiFor Respondent: Shri K.N. Krishamurthy
Section 234B

Empee Educational Foundation, Chennai vs. CIT Appeals, National Appeals Centre, New Delhi

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 3302/CHNY/2024[2017-18]Status: DisposedITAT Chennai13 Mar 2025AY 2017-18

Bench: Shri Aby T. Varkey & Shri Jagadishआयकर अपील सं./Ita No.3302/Chny/2024 िनधा8रण वष8 /Assessment Year: 2017-18 Empee Educational Foundation, The Income Tax Officer, No.63B, Nehru Salai, Vs. Exemptions Ward-2, St. Thomas Mount, Chennai. Chennai – 600 016. [Pan: Aaate 2016J]

For Appellant: NoneFor Respondent: Ms. Gounthami Manivasagam, JCIT
Section 11(2)Section 119(2)Section 12ASection 139(1)Section 143(3)

Othukkungal Service Co-Operative Bank Limited No.F1039, Malappuram vs. ITO, Ward-1, Malappuram

In the result, the appeal filed by the assessee stands allowed

ITA 858/COCH/2024[2018-19]Status: DisposedITAT Cochin10 Feb 2025AY 2018-19

Bench: Shri Inturi Rama Rao, Am Assessment Year: 2018-19 Othukkungal Service Co-Op. Bank Ltd. .......... Appellant Xi/38, Service Bank Building, Kuzhipuram Road, Othukungal, Malappuram 676528 [Pan: Aaaao1158J] Vs. The Income Tax Officer, Ward -1 .......... Respondent Tharff Bazar, Opp. Town Hall, Tirur 676101

For Appellant: ------- None -------For Respondent: Smt. Leena Lal, Sr. D.R
Section 119(2)Section 139(1)Section 139(9)Section 143(1)Section 80P

Shubh Laxmi Silk Mills, Mumbai vs. Income Tax Officer Ward, 23(3)(6), Mumbai

In the result, the appeal ITA 5801/Mum/2024 stands dismissed

ITA 5802/MUM/2024[2017-18]Status: DisposedITAT Mumbai17 Jan 2025AY 2017-18

Bench: Smt. Beena Pillai, Jm

Section 143(1)Section 154

Shubh Laxmi Silk Mills, Mumbai vs. Income Tax Officer Ward, 23(3)(6), Mumbai

In the result, the appeal ITA 5801/Mum/2024 stands dismissed

ITA 5801/MUM/2024[2017-18]Status: DisposedITAT Mumbai17 Jan 2025AY 2017-18

Bench: Smt. Beena Pillai, Jm

Section 143(1)Section 154

Alakode Coconut and Agricultural Marketing Cooperative Society Limited, Kannur vs. I T O, Ward-4, Kannur

ITA 571/COCH/2024[2019-20]Status: DisposedITAT Cochin18 Dec 2024AY 2019-20

Bench: Shri Waseem Ahmed & Shri Soundararajan K.

For Appellant: Shri Jai Krishnan, AdvocateFor Respondent: Smt. Girly Albert, Snr. DR
Section 119(2)Section 143(1)Section 80P

Alakode Coconut and Agricultural Marketing Cooperative Society Limited, Kannur vs. I T O Ward-4, Kannur

ITA 570/COCH/2024[2018-19]Status: DisposedITAT Cochin18 Dec 2024AY 2018-19

Bench: Shri Waseem Ahmed & Shri Soundararajan K.

For Appellant: Shri Jai Krishnan, AdvocateFor Respondent: Smt. Girly Albert, Snr. DR
Section 119(2)Section 143(1)Section 80P

Shri Madvirashiv Shivogimandir Samsthe Shivogimandir, Bagalkot vs. Income Tax Officer (Exemptions), Ward-1, Kalaburagi

In the result, appeal filed by the assessee is allowed

ITA 1402/BANG/2024[2019-20]Status: DisposedITAT Bangalore12 Dec 2024AY 2019-20

Bench: Shri Waseem Ahmed & Shri Keshav Dubeyassessment Year: 2019-20

For Appellant: Sri Ashok A. Kulkarni, A.RFor Respondent: Ms. Neha Sahay, D.R
Section 11Section 12ASection 154Section 250

St. Anthonys Education Society, Mumbai vs. Income Tax Officer Exemption Ward 2(3), Mumbai

In the result, the appeal of the assessee is allowed for statistical purposes only

ITA 4066/MUM/2024[2022-23]Status: DisposedITAT Mumbai17 Oct 2024AY 2022-23

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhailassessment Year: 2022-23

For Appellant: Shri Johnson Paulose, Tax AssistantFor Respondent: Shri Ram Krishna Kedia, Sr. DR
Section 11Section 11(1)Section 11(12)Section 119Section 119(2)Section 12A(1)(b)Section 139Section 143(1)Section 250

Abid Ali Khan Educational Trust, Hyderabad vs. DCIT., Exemption Circle-1(1), Hyderabad

In the result, appeal of the assessee is allowed

ITA 457/HYD/2024[2017-18]Status: DisposedITAT Hyderabad25 Sept 2024AY 2017-18

Bench: Shri K.Narasimha Chary & Shri Madhusudan Sawdiaआ.अपी.सं / Ita No.457/Hyd/2024 (धििाारण वर्ा / Assessment Year: 2017-18) Abid Ali Khan Educational Dcit Trust Vs. Exemption Hyderabad Circle-1(1) [Pan : Aaata4256G] Hyderabad अपीलार्थी / Appellant प्रत्‍यर्थी / Respondent धििााररती द्वारा/Assessee By: Mohd Shoeb, Ar राजस्‍व द्वारा/Revenue By: Shri Srinath Sadanala, Dr सुिवाई की तारीख/Date Of Hearing: 20/08/2024 घोर्णा की तारीख/Pronouncement On: 25/09/2024

For Appellant: Mohd Shoeb, ARFor Respondent: Shri Srinath Sadanala, DR
Section 11Section 11(2)Section 119(2)Section 12A(1)(b)Section 139(1)Section 143(1)Section 154

Deputy Commissioner of Income-Tax(Exemption)-2(1), Mumbai vs. Vile Parle Mahila Sangh, Mumbai

In the result, the appeal by the Revenue is dismissed

ITA 1032/MUM/2024[2018-19]Status: DisposedITAT Mumbai10 Sept 2024AY 2018-19

Bench: Shri Om Praksh Kant & Shri Sandeep Singh Karhailassessment Year : 2018-19

For Appellant: Ms Usha Gaikwad (Sr. AR)For Respondent: Shri Mandar Vaidya
Section 11(1)Section 11(2)Section 11(3)(c)Section 119(2)Section 12ASection 142(1)Section 143Section 143(1)Section 143(2)Section 143(3)

Shree Pushkar Foundation, Mumbai vs. Income Tax Officer (Exemption)-Ward 2(30, Mumbai

In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for statistical purposes

ITA 2714/MUM/2024[2021-22]Status: DisposedITAT Mumbai30 Aug 2024AY 2021-22

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail () Assessment Year: 2021-22 Shree Pushkar Foundation, Ito (Exemption) – Ward 2(3), 301/302, 3Rd Floor, Cumbala Hill Tele Exchange Atlanta Centre, Vs. (Mtnl), Peddar Rd, Tardeo, Near Udyog Bhavan, Mumbai-400026. Sonawala Road, Goregaon East, Mumbai-400063. Pan No. Aawts 2303 N Appellant Respondent

For Appellant: Mr. Sandip S. Nagar, &For Respondent: 24/07/2024
Section 11Section 11(2)Section 139(1)Section 143(1)Section 143(1)(a)