Dolli Chandrashekhar Shankar (HUF), Kolhapur V. Assistant Director of Income-Tax (CPC), Bengaluru

ITA 151/PUN/2021

AI Insights

The case involves Dolli Chandrashekhar Shankar (HUF), who appealed against the order of the CIT(A) which denied them the deduction under section 80IA(7) and the carry forward of a short term capital loss, citing the late filing of their tax return. The assessee argued that the due date for filing was extended to 31-10-2019, and thus their return filed on 10-09-2019 was within the extended deadline. The CIT(A) had opined that the extension did not apply to HUFs as they were not considered 'persons' under the relevant legal framework. The Tribunal disagreed with this interpretation, stating that an HUF is indeed a 'person' for the purposes of the law and is entitled to the extended deadline and the associated tax benefits.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137746 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 8 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 05-02-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 10-05-2021
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 2; 143(1); 139(1); 2(A)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH, ‘A’ PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.151/PUN/2021 नधा रण वष / Assessment Year : 2019-20 Dolli Chandrashekhar Shankar (HUF), Shankar Parvati, 22/19, E, Sardar Colony, Tarabai Park, Kolhapur 416 003 Maharashtra PAN : AADHD1042G Vs. ACIT, Circle-1, Kolhapur Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP : This appeal by the assessee is directed against the order dated 16-03-2021 passed by the CIT(A) in National Faceless Appeal Centre, Delhi in relation to the assessment year 2019-20. 2. The only issue raised in this appeal is against disallowance of deduction u/s.80IA(7) amounting to Rs.9,21,740/- and further not permitting carry forward of current year short term capital loss amounting to Rs.1,85,900/-, in Intimation u/s 143(1) of the Income-tax Act, 1961 (hereinafter called `the Act’), both on the Assessee by None (Written submissions filed) Revenue by Shri Ramnath P. Murkunde Date of hearing 06-02-2023 Date of pronouncement 07-02-2023 ITA No.151/PUN/2021 Dolli Chandrashekhar Shankar (HUF) 2 ground that the assessee filed return beyond the due date as prescribed u/s 139(1) of the Act. 3. Succinctly, the facts of the case are that the assessee is an HUF, who filed its return on 10-09-2019 claiming deduction u/s.80IA(7) and carry forward of the above referred amounts. An Intimation was issued u/s.143(1), not allowing the above items on account of late filing of the return. The assessee challenged such Intimation before the ld. CIT(A) contending that the due date was extended by 31-10-2019. The ld. CIT(A) went through the Order u/s.119 dated 27-09-2019 extending the due date to 31-10-2019 in respect of cases falling under Explanation 2(a) to section 139(1). Since the assessee is an HUF, not covered by Explanation 2(a) to section 139(1) as opined by the ld. CIT(A), the carry forward of loss and deduction u/s.80IA(7) was held to be rightly denied. 4. We have heard the ld. DR and gone through the written submissions furnished on behalf of the assessee. Primarily, it is noted from the impugned order that the assessee furnished return on 10-09-2019, which is beyond the due date expressed u/s.139(1) as 31-08-2019. It is relevant to note that the said date was extended by an Order of the Board dated 27-09-2019 up to ITA No.151/PUN/2021 Dolli Chandrashekhar Shankar (HUF) 3 31-10-2019. If we go by the extended date, then the return filed by the assessee on 10-09-2019 is within time. However, the ld. CIT(A) has held the 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. The accounts of the assessee were audited, which is an admitted position. The ld. CIT(A) has denied the benefit of the Board’s Order by opining that an HUF cannot be considered as a `person’. In our considered opinion, this interpretation is not in accordance with law. Clause (a)(ii) of the Explanation 2 to section 139(1) covers any person whose accounts are required to be audited. Such a `person’ may be Individual, HUF or a Body Corporate etc. Since the assessee- HUF was required to get its accounts audited, the case falls in Explanation 2(a)(ii) to section 139(1), entitling the assessee to the extended date of 31-10-2019. As the return was filed before the extended due date, we hold that the assessee is entitled to the ITA No.151/PUN/2021 Dolli Chandrashekhar Shankar (HUF) 4 benefit of deduction u/s.80IA(7) and also carry forward of the short term capital loss as discussed above. 5. In the result, the appeal is allowed. Order pronounced in the Open Court on 07 th February, 2023. Sd/- Sd/- ( S.S. VISWANETHRA RAVI) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; िदनांक Dated : 07 th February, 2023 सतीश आदेश की ितिलिप अ ेिषत/Copy of the Order is forwarded to: 1. अपीलाथ / The Appellant; 2. थ / The Respondent 3. DR, ITAT, ‘A’ Bench, Pune 4. गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune ITA No.151/PUN/2021 Dolli Chandrashekhar Shankar (HUF) 5 Date 1. Draft dictated on 06-02-2023 Sr.PS 2. Draft placed before author 06-02-2023 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *