Section 139(4A) of the Income Tax Act
Income-tax Act, 2025: s.263
Section 139(4A) falls under section 139 of the Income-tax Act, 1961, which corresponds to section 263 (Return of income) of the Income-tax Act, 2025.
Read section 263 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 139(4A) is CIT v. Kasturi & Sons Ltd. (3 SCC 346), cited in 153 of the 151 judgments on BharatTax that turn on this section.
Leading authorities on Section 139(4A)
Fiscal statutes must be construed strictly and literally. When the language is plain and unambiguous, courts must give effect to it without considering legislative intent or equitable considerations.
An educational institution that generates a surplus does not automatically lose its charitable status or cease to exist solely for educational purposes. This is true if the surplus is reinvested for its educational objectives, and the predominant object test determines if the institution's primary aim is education or profit.
A charitable educational institution or trust does not lose its charitable character merely because it generates a surplus, provided its primary object remains charitable and it does not operate for profit. The assessment of charitable nature should focus on the institution's objects rather than the quantum of surplus generated.
A charitable trust registered under section 12AA can be denied exemption under section 11 for failure to furnish the audit report in Form 10B along with the return of income, but this failure may be considered a procedural lapse.
A charitable trust is entitled to claim exemption under Section 11 even if Form 10B is filed at a later stage, as the filing of this form is a procedural requirement and not a condition precedent for claiming exemption.
The validity of assessment proceedings can be examined during penalty proceedings, even if the assessment itself was not challenged. This is because issues of jurisdiction go to the root of the matter.
A trust registered under section 12AA can avail the benefit of exemption under section 11 if its return of income is filed within the time allowed under section 139. Even if filed belatedly under section 139(4A) but before the last day of filing a belated return under section 139(5), it should be treated as due compliance with section 12A(1)(ba), entitling the assessee to exemption under section 11.
Filing Form 10B is a directory, not mandatory, requirement. Therefore, exemption under section 11 cannot be denied solely for delay in filing Form 10B, especially if it is filed before the assessing officer or during appellate proceedings.
Income from each educational institution run by a society is considered separately for the purpose of exemption under section 10(23C)(iiiad), provided it does not receive government aid and its aggregate annual receipts do not exceed Rs. 1 crore. If income exceeds this limit, an ITR must be filed.