Indian National Congress All India Congress Committee Vs DCIT (ITAT Delhi)
ITAT Delhi held that exemption granted to political party under section 13A denied to assessee (Indian National Congress) due to violation of 3rd proviso i.e. return of income not filed within prescribed due date. Accordingly, appeal of assessee dismissed.
Facts- The assessee/appellant, namely, Indian National Congress is admittedly a political party registered under the Representation of Peoples Act, 1951. It had filed its return on 02.02.2019 declaring nil income after claiming section 13A exemption of Rs.199,15,26,560/- in question. Assessing Officer disallowed the above exemption claim. The assessee then preferred its appeal before the CIT(A) which stood rejected on 14.09.2021 on the ground that the same had followed the impugned section 143(3) assessment order dated 06.07.2021 under challenge denying the very section 13A exemption herein.
Conclusion- Held that the assessee’s return filed on 02.02.2019 is not within the “due” date to make it eligible for the impugned exemption. It’s further plea that we ought to go by the alleged corresponding pani matenia provision in section 12A(1)(ba) hereinabove, it is manifestly clear that the legislature has incorporated the statutory expression therein as “within the time allowed under that section” i.e. section 139(1) as well as u/s 139(4) than section 13A 3rd proviso r.w.s. 139(4B) r.w.s. 139(1) and Explanation (2) applicable herein (supra). We thus reject the assessee’s instant first and foremost substantive grievance in very terms and decide the above first question framed between the parties; in the department’s favour.
