Exemption u/s. 11 of the Act is allowable When Income Tax Return filed within specified Time Limit: ITAT [Read Order]

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the exemption under section 11 of the Income Tax Act,1961 is allowable when a Income Tax Return is filed within the specified time limit of subsection 139 of the act.

Sh. K. V. S. R. Krishna, CA appeared on behalf of the appellant assessee and Sh. Om Parkash appeared on behalf of the respondent.

Conference of Religious India, the assessee is a charitable institution registered u/s. 12A of the Income Tax Act,1961 and is claiming exemption u/s. 11 of the Act.  The assessee filed its return of income for the year under consideration on 23.02.2021 claiming by benefits u/s 11 of the Act.  The return was accompanied by the audit report in form No.10B.  Form No.10 was also filed before the due date of filing of return of income showing an accumulation of income of Rs.34 lacs.

The return was processed u/s. 143 (1) of the Act but the benefit of section 11 was not allowed and gross receipts of Rs.8559512/- have been taxed.  The assessee challenged the order before the CIT(A).  It was brought to the notice of the CIT(A) that the return of income was filed on 23.02.2021 and the due date as extended was 15.02.2021.

The contention of the assessee was dismissed by the CIT(A) who was of the firm belief that the return has been filed beyond the due date as mandated in section 139 (1) of the Act.  The CIT(A) also dismissed the claim of the assessee that it is squarely covered by the CBDT instruction (supra).

It was observed that Circular No.06/2020  is very clear and unambiguous in so far as the return of income filed u/s. 139 of the Act is concerned.  The ITAT  bench viewed that if the return is filed within the specified time limit of sub-section 139 would be eligible for the benefit given by the  CBDT circular and should avail the benefit of exemption u/s. 11 of the Act. 

The Coram of the ITAT bench consists of Sh. N K Billaiya, accountant member held that the CIT(A) erred in misinterpreting the aforementioned circular andto that extent the order of the CIT(A) is erroneous and deserves to be set aside if the grievance of the assessee is allowed. 

While allowing the appeal of the assessee, the bench directed the CIT(A) exemption to consider the return of the assessee and allow the benefit as per the provisions of the law.  

To Read the full text of the Order CLICK HERE

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