Files Return of Income Belatedly without filing  Form No.10B to claim deduction u/s 11 or 12 of Income Tax Act: ITAT directs Re-adjudication in respect of Condonation Petition [Read Order]

The Income Tax Appellate Tribunal (ITAT), Chennai bench directed readjudication in respect of condonation petition filed for belatedly filed return of income without filing Form No.10B to caim deduction under Section 11/12 of the Income Tax Act , 1961

The assessee, Papathiyammal Pitchai Educational Trust filed the return of income belatedly. Consequently, the deduction claimed by the assessee under Section  11 / 12 of Income Tax Act was denied by CPC (Centralised Processing Center) while processing the return of income under Section 143(1) of Income Tax Act.

Aggrieved by the order, the assessee filed an appeal  before the CIT(A) who held that AO did not point out any reasons to deny the benefit. The income of the assessee was accepted in AY 2019-20. The assessee was registered under Section  12AA of the Income Tax Act  and it was imperative to provide the benefit of exemption/ deduction as available to it.

Therefore, the revenue filed a second appeal before the tribunal.

It was observed by the tribunal that  assessee has valid registration umder Section 12AA, still, it has to comply with the mandatory requirements of law to lay claim on impugned deduction.

The law mandates the assessee to file return of income within the due date as prescribed under Section 139(1) along with Form No.10B so as to lay claim on this deduction. Certainly, the assessee has defaulted in the same. Itwas also noted that Assese filed a condonation petition for seeking condonation of delay under Section 119(2)(b Income Tax Act.

After reviewing the facts and records, the two-member bench of  Manoj Kumar Aggarwal (Accountant member) and  V. Durga Rao (Judicial Member) directed readjudication in respect of a condonation petition filed by the assessee.

P.Sajit Kumar, counsel appeared for revenue and S. Sridhar counsel appeared for assessee.

To Read the full text of the Order CLICK HERE

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