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TMI Blog2017 (1) TMI 567X X X X Extracts X X X X X X X X Extracts X X X X ..... ile the return of income, the AO issued a notice u/s 142(1) requiring the assessee to file return of income. The assessee neither complied with this notice nor filed return of income in terms of section 139 or 142(1) of the Act and hence, the Assessing Officer proceeded to initiate best judgment assessment u/s 144 of the Act as per the notice issued u/s 142(1) of the Act. Accordingly, the Assessing Officer called for details, which were required by her to complete the assessment u/s 144 of the Act. During the course of assessment proceedings, the assessee filed a return of Income on15.2.2013, which was beyond the time allowed u/s 139 and the time given in notice u/s142(1) and, therefore, the Assessing Officer treated the same as invalid. On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d held that the Tribunal was not justified in denying the benefit of exemption u/s 80P of the Act on the mere ground of belated filing of return of income. The Hon'ble High Court was considering the following substantial question of law: "B Whether the Tribunal is justified in denying the exemption u/s 80P of the I T Act 1961 on the mere ground of belayed filing of return by the assessee? C. Whether a return filed by the assessee beyond the period stipulated u/s 139(1)/(4) or section 142(1)/148 can be held as non-est in law and invalid for the purpose of deciding exemption u/s 80P of the I T act, 1961?" 6.1 In considering the above substantial question of law, the Hon'ble High Court rendered the following findings: "18. Questions B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 with effect from 1.4.2006. This clearly evidences the legislative intendiment that the inhibition contained in sub section 5 of section 80A would operate by itself. In cases where returns have been filed, the question of exemptions or deductions referable to section 80P would definitely have to be considered and granted if eligible. 20 Hence, question would arise as to whether belated returns filed beyond the period stipulated under section 139(1) or section 139(4) as well as following sections 142(1) and 148 proceedings could be considered for exemption. If those returns are eligible to be accepted in terms of law, going by the provisions of the statue and the governing bind precedents, it goes without saying that the claim for exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n all such situations, it cannot be treated that a return filed at any stage of such proceedings could be treated as non-est in law and invalid for the purpose of deciding exemption under section 80p o the IT Act. We thus, answer substantial questions of law Band C formulated and enumerated above." 6.2 In light of the above judgment of the Hon'ble High Court, the belated filing of return of income by the assessee does not disentitle it from the benefit of deduction u/s 80P(2) of the Act. Further, the assessee, in the instant case, is a primary agricultural credit society registered under the Kerala Cooperative Societies Act, 1969. The certificate has been issued by the Registrar of Cooperative Societies to the above said effect and the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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