The assessee-trust filed its return of income belatedly but within the time allowed under Section 139(4A). The AO denied the exemption claimed u/s. 11, stating that the return was not filed within the time limit prescribed u/s.(1). However, as per CBDT Circular No. 173/193/2019-ITA-I dated 23-4-2019, if a trust files its return belatedly but within the time permitted u/s. 139(4A), the AO/CPC must allow the exemption claim under Section 11.

Held that the assessee had filed its return well within the time allowed under Section 139(4A), making it eligible for exemption under Section 11. The impugned order was set aside, and the matter was restored back to the Commissioner (Appeals) with a direction to pass a rectification order in line with the CBDT Circular. The assessee-trust is entitled to exemption under Section 11 despite filing a belated return, as it was filed within the permissible time under Section 139(4A). (AY. 2018-19)