All India Spices Exporters Forum Vs ITO (ITAT Cochin)
Cochin ITAT: Belated Return Filing Not Fatal for 11 Exemption Prior to AY 2018-19- Finance Act 2017 Amendment Prospective – Tribunal Grants Assessee Fresh Hearing
Assessee, a public charitable trust registered u/s 12A, filed return on 31.03.2015 declaring Nil income after claiming exemption u/s 11. Return was processed u/s 143(1) vide intimation dated 16.03.2016 wherein exemption was denied on the grounds that (a) audit report in Form 10B was filed beyond due date prescribed u/s 139(1), (b) investments were not made in prescribed modes u/s 11(5), & (c) notice of accumulation u/s 11(2) was not filed before due date. AO thus taxed the gross receipts.
Aggrieved, Assessee filed rectification application u/s 154, which was rejected on 04.11.2020. Appeal before CIT(A)/NFAC was also dismissed on 12.11.2024, solely on ground that return was not filed within due date u/s 139(1).
Before Tribunal, it was argued that for AY 2014-15, there was no statutory requirement to file return within time u/s 139(1) as condition precedent for exemption u/s 11. This condition was inserted only by Finance Act 2017 w.e.f. AY 2018-19. Reliance was placed on Memorandum explaining the amendment.
Tribunal accepted contention, holding that CIT(A) erred in rejecting exemption claim merely on ground of belated filing. It restored the matter to CIT(A) for fresh adjudication of Assessee’s claim on merits, with direction not to deny exemption merely due to late filing. It was further directed to verify factual aspects like date of filing Form 10B & compliance with s.11(5). Accordingly, appeal was allowed for statistical purposes, keeping all contentions open.
