Case Law Details
Dolli Chandrashekhar Shankar (HUF) Vs ACIT (ITAT Pune)
ITAT Pune held that order u/s 119 dated 27.09.2019 extending due date to 31.10.2019 in respect of cases covered under Explanation 2(a) to section 139(1) applies to HUF too. Accordingly, as return by HUF filed within extended time limit, deduction u/s 80IA(7) of Income Tax Act allowable.
Facts- 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 ground that the assessee filed return beyond the due date as prescribed u/s 139(1) of the Act.
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 3 1-08-2019. It is relevant to note that the said date was extended by an Order of the Board dated 27-09-2019 up to 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.
Conclusion- Held that 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 assesseeHUF 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 benefit of deduction u/s.80IA(7) and also carry forward of the short term capital loss.
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