Case Law Details
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.
Consequently, the impugned order of the Ld. CIT(A) was set aside, and the ITAT directed the Ld. Assessing Officer (AO) to grant the exemption to Haringhata Mahavidyalay under Section 10(23C)(iiiab) of the Act as claimed by the assessee.
The appeal of the assessee was consequently allowed, and the order was pronounced in open court on 1st October 2024.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
The present appeal has been preferred by the assessee against the order dated 30.10.2023 of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as the “Ld. CIT(A)” passed u/s. 250 of the Income-tax Act, 1961 (hereinafter referred to as the “Act”).
2. The first issue involved in this appeal is as to whether the exemption u/s. 10(23C)(iiiab) of the Act can be denied to the assessee trust for late filing of the income tax return i.e. beyond time specified u/s. 139(1) of the Act and secondly, if the return is required to be mandatorily filed then whether, the filing of the return u/s. 139(4D) instead of section 139(4C) of the Act disentitles the assessee from claiming the exemption u/s. 10(23C)(iiiab) of the Act.
3. The Ld. Counsel for the assessee has contended that there is no provision under the Income Tax Act vide which the exemption u/s. 10(23C)(iiiab) of the Act can be denied to an assessee for non-filing or late filing of the income tax return as required u/s. 139 of the Act and within the period specified u/s. 139(1) of the Act.
4. The Ld. DR could not point out any relevant provision or section under the Income Tax Act which disentitles the assessee from claiming exemption u/s. 10(23C)(iiiab) of the Act for non-filing/late filing of the income tax return. Therefore, the action of the lower authorities in denying the exemption to the assessee on this ground is not sustainable.
5. The second issue as to whether the filing of the return in wrong form i.e. Form u/s. 139(4D) instead of Form u/s. 139(4C) becomes irrelevant.
In view of the above stated legal position the action of the lower authorities in denying exemption to the assessee cannot be held to be justified. The impugned order of the Ld. CIT(A) is set aside and the Ld. AO is directed to grant exemption to the assessee as claimed u/s. 10(23C)(iiiab) of the Act.
6. In the result, the appeal of the assessee stands allowed.
Order is pronounced in the open court on 01.10.2024
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