The Pune bench of Income Tax Appellate Tribunal (ITAT) has recently while allowing the benefit of extending date as per explanation 2(a)(ii) to section 139(1) Income Tax Act 1961 held that Hindu Undivided Family is Person therefore they are liable for getting its accounts audited.
2(a)(ii) to section 139(1) Income Tax Act 1961 states that every person should file their return of income if the total income of such a person exceeds the exemption limit.
Assessee Dolli Chandrashekhar Shankar is an HUF, who filed its return on 10-09-2019 claiming deduction and carry forward amounts required by assessee. But Intimation was issued to the assessee that not allowing the above items on account of late filing of the return. The assessee challenged such Intimation before the Commissioner of Income Tax Appeal CIT (A) contending that the due date was extended by 31-10-2019.The CIT (A) rejected assessee submission and confirmed the order of the assessing officer. Against the order assessee filed an appeal before the ITAT.
For assessee no one has appeared but in the written submission filed by the assessee contended that assessee filed the return within the prescribed time mentioned the order of Board.
Ramnath P. Murkunde, Counsel for the revenue contented that “assessee to be disentitled to the benefits on the ground that the extension did not apply to the assessee-HUF. Clause (a)(ii) of Explanation 2 to section 139(1) deals with `due date’ as concerning a person other than a company whose accounts are required to be audited under the Act or under any law for the time being in force”
After considering the contentions of the both parties the division bench of ITAT comprising R.S. Syal, (Vice President)and S.S. Viswanethra Ravi,(Judicial Member) allowed the appeal filed by the assessee and observed that as per explanation 2(a)(ii) to section 139(1) Income Tax Act 1961 HUF is considered as person hence assessee HUF was required to get its accounts audited also assessee entitled the extended date of 31-10-2019 for filing return.
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