TMI Blog2022 (11) TMI 1035X X X X Extracts X X X X X X X X Extracts X X X X ..... o.343/Hyd/2022) - - - Dated:- 21-11-2022 - Shri Rama Kanta Panda, Accountant Member AND Shri K.Narasimha Chary, Judicial Member For the Assessee : Shri P.Murali Mohan Rao, CA For the Revenue : Shri Rajendra Kumar, CIT-DR ORDER PER SHRI RAMA KANTA PANDA, A.M. This appeal filed by the assessee is directed against the order dated 12.06.2022 of the Learned Commissioner of Income Tax (Appeals)/National faceless Appeal Centre (NFAC), Delhi for AY 2020-21. 2. Facts of the case, in brief, are that the assessee is a society registered under the Telangana Societies Registration Act, 2001. It is formed for the purposes of welfare of the journalists by improving the living standards of the journalists and to support their families through various welfare activities and other similar objects. It is granted registration u/s. 12AA of the I.T.Act, 1961 vide registration No. CIT(Exemption), HYd/12AA/2018- 19/A/10317. It filed its return of income on 31.03.2021 belatedly but within the time permitted u/s. 139(4) r.w.s. 139(4A) along with audit report in form 10B declaring nil total income. An intimation u/s. 143(1), dated 24.12.2021 was issued to the assessee determi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e voluntary contributions to the corpus become exempt only by virtue of operation of section 11 (1 ) (d) which is again reproduced below: 11. (1) Subject to the provisions of sections 60 to 63, the following income shall not be included in the total income of the previous year of the person in receipt of the income- (a) ..... (d) income in the form of voluntary contributions made with a specific direction that they shall form pat of the corpus of the trust or institution. Thus the appellant's contention that corpus donation are capital receipts and exempt is misplaced as firstly section 2(24)(iia) considers all voluntary contributions to be income' and secondly the corpus donation get exemption from income only by virtue of operation of section 11 (1 )( d) of the Act. In the given case the appellant has been denied the deduction u/s 11 of the Act. as conditions laid down in section 12A for claiming the said exemption are not met. viz. the return along with audit report in Form 10B has been filed beyond the due date allowed u/s 139 of the Act. As the deduction u/s 11 has been denied all voluntary contribution whether corpus or other than corpus donation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o AY 2018-19 and subsequent years. 6.1 In his alternate contention, he submitted that he has no objection if the matter is restored to the file of the AO with direction to consider the CBDT instruction on this issue for claiming the deduction u/s. 11 and 12A even in respect of returns filed u/s. 139(4) 139(4A). 6.2 The ld. DR on the other hand while relying on the order of the ld. CIT(A) submitted that he has no objection if the issue is restored to the file of the ld.CIT(A)/NFAC with direction to decide the issue afresh in the light of the CBDT instruction No.173/193/2019-ITA-1 relied on by the ld.counsel for the assessee according to which benefit of section 11 and 12A cannot be denied in case where returns are filed u/s. 139(4) 139(4A). 6.3 He also relied on the following decisions:- 1. Arham Pumps vs. DCIT reported in 195 ITD 679 (Ahd.Trib) 2. Grama Vidyodaya sangha(Regd) vide ITA No.345/Bang/2022, order dated 06.09.2022 for AY 2018-19 7. We have heard the rival arguments made by both the sides, perused the orders of the CPC, Bangalore and ld.CIT(A)/NFAC and the paper book filed on behalf of the assessee. We have also considered the various decisions c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... without giving effect to the provisions of sections 11 and 12 exceeds the maximum amount which is not chargeable to income-tax. However , there is no clarity as to whether the said return of income is to be filed within time allowed u/ s 139 of the Act or otherwise. In order to provide clarity in this regard , it is proposed to further amend section 12A so as to provide for further condition that the person in receipt of the income chargeable to incometax shall furnish the return of income within the time allowed under section 139 of the Act. These amendments are clarificatory in nature. These amendments will take effect from 1st April, 2018 and will, accordingly, apply in relation to assessment year 2018-19 and subsequent years. 3. Additionally, an excerpt of circular 02/2018 dated 15.02.2018 Explanatory Notes to the Provisions of the Finance Act, 2017 on insertion of clause (ba) in Sub section (1) of section 12A is quoted as under: the entities registered under section 12AA are required to file return of income under sub-section (4A) of section 139 of the Income -tax Act, if the total income without giving effect to the provisions of sections 11 and 12 exceeds ..... X X X X Extracts X X X X X X X X Extracts X X X X
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