Case Law Details
Telangana Working Journalists Welfare Fund Vs ITO (Exemptions) (ITAT Hyderabad)
ITAT Hyderabad held that CIT(A)/ NFAC failed to consider circular no. F.173/193/2019-ITA-1 dated 23.04.2019 and subsequent circular No.2/2020 vide F.No.197/55/2018-ITA-I dated 03.01.2020 which are issued by CBDT and the same is binding on the revenue authorities. Accordingly, matter restored.
Facts- The assessee is a society registered under the Telangana Societies Registration Act, 2001. It is granted registration u/s. 12AA of the I.T.Act, 1961. It filed its return of income on 31.03.2021 belatedly but within the time permitted u/s. 139(4) r.w.s. 139(4A) along with audit report in form 10B declaring ‘nil’ total income. An intimation u/s. 143(1), dated 24.12.2021 was issued to the assessee determining the total income at Rs.24,51,44,792/- and determining the tax liability, Fees and interest at Rs. 12,83,26,572/- after denying the benefit of section 11 and section 12 to the assessee. In the intimation, the CPC considered the corpus donation of Rs. 23,18,75,399 as income and determined the tax and other liabilities on the basis of such corpus donation and bank interest income of Rs. 1,32,69,393/-.
The assessee filed an appeal before the ld.CIT(A)/NFAC. CIT(A)/ NFAC held that since the assessee has not furnished the return of income along with audit report in Form No.10B on or before the due date of furnishing of return of income, which is one of the conditions to claim the benefit under section 11 and 12, therefore, the order of the CPC is in accordance with the provisions of the Act.
Conclusion- CBDT vide circular no. F.173/193/2019-ITA-1 dated 23.04.2019 and subsequent circular No.2/2020 vide F.No.197/55/2018-ITA-I dated 03.01.2020 were not considered by the ld.CIT(A)/NFAC, although, these are instructions/circulars issued by the Board and are binding on the revenue authorities, therefore, considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of ld.CIT(A)/NFAC with the direction to adjudicate the issue afresh in the light of the circulars/instructions issued by the CBDT clarifying the time allowed for filing of return of income subsequent to the insertion of clause(ba) in sub-section (1) of section 12A of the Act. Needless to say, the ld.CIT(A)/NFAC shall give due opportunity of being heard to the assessee and decide the issue as per fact and law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.
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