Conference Of Religious India , New Delhi V. Ward- Exemption 1(3) , New Delhi

ITA 2161/DEL/2022

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 0931 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-10-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 09-10-2022
• Assessment Year: 2020-2021
• Appeal Filed On: 04-09-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 11; 139; 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘SMC’, NEW DELHI BEFORE SH. N.K. BILLAIYA, ACCOUNTANT MEMBER ITA No.2161/Del/2022 Assessment Year: 2020-21 Conference of Religious India CRI House masigarh Jamia Nagar, Okhla, New Delhi PAN No. AAATC03815J Vs Ward Exemption 1 (3) New Delhi (APPELLANT) (RESPONDENT) Appellant Sh. K. V. S. R. Krishna, CA Respondent Sh. Om Parkash, Sr. DR Date of hearing: 10/10/2022 Date of Pronouncement: 13/10/2022 ORDER PER N.K. BILLAIYA, AM: This appeal by the assessee is preferred against the order of the CIT(A), National Faceless Centre, (NFAC) dated 17.08.2022 pertaining to A.Y. 2020-21. 2. The grievance of the assessee read as under :- 2 3 3. Briefly stated the facts of the case are that the assessee is a charitable institution registered u/s. 12A of the Act 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 the benefits u/s 11 of the Act. The return was accompanied with the audit report in form No.10B. Form No.10 was also filed before the due date of filing of return of income showing accumulation of income of Rs.34 lacs. 4. 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/- has been taxed. 5. 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 4 filed on 23.02.2021 and the due date as extended was 15.02.2021. 6. The assessee claimed that the return was filed before 31.03.2021 which is the time allowed u/s. 139 of the Act. It was also brought to the notice of the CIT(A) that the assessee has filed audit report in Form No.10B on 19.12.2020 and form No. 10 on 22.12.2020. 7. Strong reliance was placed on the instruction of CBDT F. No.173/193/2019 –ITA –I dated 23.04.2019 wherein the CBDT has clarified with regard to the time allowed for filing of the return of income subsequent to the insertion of clause (ba) in sub section 1 of section12A of the IT Act which includes the IT return filed within the time allowed u/s. 139 of the Act. The contention of the assessee were dismissed by the CIT(A) who was of the firm belief that return has been filed beyond 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) and the CIT(A) accordingly dismissed the appeal of the assessee. 8. Before me the Counsel reiterated what has been stated before the lower authorities and once again relied upon the CBDT circular (supra). The DR strongly supported the findings of the CIT(A). 5 9. I have given a thoughtful consideration to the orders of the authorities below. The undisputed facts are that the assessee filed its return of income on 23.02.2021. It is also not in dispute that the due date for this assessment year has been extended till 15.02.021. This means that there was a delay of 7 days but considering the pandemic period and the decision of the Hon’ble Supreme Court by which the Hon’ble Supreme Court has extended the period of limitation across board, I am of the opinion that the delay of 7 days deserves to be condoned. In any case the return was filed before 31.03.2021 which is the last date for filing a belated return of income. It would be pertinent to refer to the above CBDT Circular which is as under :- 6 7 10. In my considered opinion the language of the aforementioned Circular is very clear and unambiguous in so far as the return of income filed u/s. 139 of the Act is concerned. Section 139 has several sub sections (1), (2), (3), (4), (4a), (5). I am of the considered view that if the return is filed within the specified time limit of sub section of 139 would be eligible for the benefit given by the above mentioned CBDT circular and should avail the benefit of exemption u/s. 11 of the Act. In my considered opinion the CIT(A) erred in misinterpreting the aforementioned circular and, therefore, to that extent the order of the CIT(A) is erroneous and deserves to be set aside the grievance of the assessee is allowed. 11. The second substantive grievance of the assessee is that the delay has not been condoned inspite of CBDT circular No.06/2020 dated 19.02.2020. The above said circular is as under :- 8 9 12. In the light of the mandate of the CBDT in the aforementioned circular I direct the CIT(A) exemption to consider the return of the assessee and allow the benefit as per the provisions of the law. 13. In the result, the appeal of the assessee is allowed in part for statistical purpose. Order pronounced in the open court on 13.10.2022. Sd/- (N. K. BILLAIYA) ACCOUNTANT MEMBER *NEHA, Sr. Private Secretary* Date:- .10.2022 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 10 Date of dictation 11.10.2022 Date on which the typed draft is placed before the dictating Member 12.10.2022 Date on which the typed draft is placed before the Other member 13.10.2022 Date on which the approved draft comes to the Sr.PS/PS 13.10.2022 Date on which the fair order is placed before the Dictating Member for Pronouncement 13.10.2022 Date on which the fair order comes back to the Sr. PS/ PS 14.10.2022 Date on which the final order is uploaded on the website of ITAT 17.10.2022 Date on which the file goes to the Bench Clerk 17.10.2022 Date on which file goes to the Head Clerk. The date on which file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order