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TMI Blog2017 (12) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... Explanation 2(b) of section 11(1) just because the authority under Rule 17 with regard to prescribing limitation for exercising option u/s 11(2) has not been held to be valid by the High Court for the reason that the limit in the matter of giving notice was not within the delegated authority under Rule 17 of IT Rules, 1962. 2. The appellant craves leave to add, alter or amend any ground of appeal raised above at the time of hearing." 2. Brief facts of the case are as under: The assessee filed its return of income along with audited report on 22/03/12. The case was selected for scrutiny and notice under section 143 (2) was issued. In response to various notices, authorised representative of assessee attended assessment proceedings from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment order, assessee preferred appeal before Ld. CIT (A), who allowed the claim by relying upon the decision of Hon'ble Supreme Court in the case of CIT vs. Nagpur Hotel Owners Association (supra). Ld. CIT (A) held as under: "4.5. I have considered the facts of the case, the observations and reasoning of the AO and the submissions made by the appellant as well as the relevant case laws. It is noted that the provisions of section 11 (1), explanation relating to exercise of option for accumulation and section 11 (2) of the act relating to accumulation for specific purpose/project are identical to the provisions of explanation 2, section 11 (1 relating to exercise of option for accumulation. Hon'ble Supreme Court in its landmark j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prescribed under Rule 17 of the Act and placed heavy reliance upon the reasoning adopted by Hon'ble Supreme Court in the case of Nagpur Hotel Owners Association (supra). 6.1. Ld. AR submitted that the conjoint reading of section 11 and section 139 of the Act makes it clear that a charitable or religious trust whose income is exempt under section 11 or 12, is required to submit a return of income by virtue of subsection (4A) of section 139 of the Act. It was submitted that subsection (1) of section 39 provides the time within which return is required to be submitted voluntarily. Subsection (4) of section 139 however permits an assessee who has failed to furnish a return within the time allowed by subsection (1), to file the same at any time ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observed from the assessment records, assessee had furnished the details under Form 10 before the assessment proceedings had been initiated. Therefore the assessing officer had the benefit of verifying claim of exemption during the pendency of assessment. 9.1. On a careful reading of section 139 of the Act, we are of the opinion that subsection (1) and (4) of section 139 have to be read together and, on such a reading, it is very clear that return is filed within the specified period under subsection (4) has to be considered as having been made within the time prescribed in subsection (1) or subsection (2) of section 139 of the Act. In other words if a return is filed within the time specified under subsection (4) of 139 of the Act and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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