Assessee-society was issued a certificate a registration under section 12AA. On account of non-filing of return within prescribed time, a notice was issued under section 142(1). However, failed to file return of income even within time granted in said notice / in such background, exemption under section 11 was denied and a notice was issued in respect of income assessed. Assessee thus filed an application seeking condonation of delay as per Circular F. No. 197/55/2018, dated 22-5-2019 Though the application was pending before the CBDT the assessment order was passed and demand was raised. On writ allowing the petition the Court held that assessee having registration under section 12AA to recall of denied exemption in Form 10B and to seek condonation of delay. Directed the revenue authorities should decide application seeking condonation of delay in filing return by assessee; till then demand was to be kept in abeyance. Matter remanded. (A.Y. 2007-18)
Sree Narayana Educational and Charitable Society v. CIT (2020) 274 Taxman 160 (Ker.)(HC)
S. 11 : Property held for charitable purposes-Return was not filed with in the period specified in the notice-Assessment completed denying the exemption and demand was raised-Application for condonation of delay in filing the return was pending before CBDT-Directed to decide the application for condonation of delay and the demand was stayed till the disposal of application. [S. 12AA, 119, 139, 142(1), Form No. 10B, Art. 226]