Haringhata Mahavidyalay Vs ITO (ITAT Kolkata)
ITAT Kolkata Rules Against Denial of Exemption Due to Late Filing of Income Tax Return for Haringhata Mahavidyalay
The Income Tax Appellate Tribunal (ITAT) Kolkata recently heard an appeal filed by Haringhata Mahavidyalay challenging the order dated 30th October 2023 issued by the Ld. Commissioner of Income Tax (Appeals) (NFAC), Delhi, under Section 250 of the Income-tax Act, 1961. The primary issue under dispute was whether the exemption under Section 10(23C)(iiiab) of the Act could be denied to the assessee for late filing of the income tax return or for filing the return using the incorrect form.
The Ld. Counsel for the assessee argued that there is no specific provision in the Income Tax Act that allows for the denial of exemption under Section 10(23C)(iiiab) due to non-filing or late filing of the return within the period stipulated under Section 139(1) of the Act. The Ld. Counsel contended that late filing or the choice of form used (Form 139(4D) instead of Form 139(4C)) should not be a ground for disqualifying the assessee from claiming the exemption.
The Ld. Departmental Representative (DR) failed to point to any relevant provision or legal section within the Income Tax Act that would disentitle the assessee from claiming the exemption on these grounds. Therefore, the lower authorities’ action of denying the exemption was deemed unsustainable by the ITAT Kolkata. The Tribunal found that the legal position did not support the denial of exemption based solely on the late filing of the return or the use of an incorrect form.
