ITO v. Debendra and Rohini Memorial Trust. (2023) 202 ITD 587 (Kol)(Trib.)

S. 11 : Property held for charitable purposes-Filed return after time allowed under section 139(4A) but before last day of filing of belated return under section 139(5)-Return should be treated as due compliance with clause (ba) in sub-section (1) of section 12A-Entitle for exemption. [S. 12A(1) (ba), 139(1), 139(4A), 139(5)]

Assessee-trust filed return of income after time allowed under section 139(4A) claiming exemption under section 11.  Assessing Officer denied exemption for not filing return within time as prescribed under section 139(4A) as required under section 12A(1)(ba). CIT(A) allowed the exemption. On appeal the Tribunal held that  in Bangarh Educational Welfare Trust v. ITO (E) [IT Appeal No. 496 (Kol.) of 2021, dated 2-1-2022] taking note of CBDT Circular F. No. 173/193/2019-ITA-I, dated 23-4-2019 held that since section 139(1) and section 139(5) are part of section 139 only and in this section 139 and sub-section (5) provides mechanism to file a belated return, therefore, even if assessee files return before last date of filing of belated return same should be treated as due compliance to section 12A(1)(ba). Order of CIT(A) is affirmed. (AY. 2020-21)