INCOME TAX ACT, 1961

Section 20(23C)(iiiab) Section 139(9)

Charitable trust - Exemption under section 10(23C)(iiiab) - Returns of income filed by assessee for relevant assessment years (2014-15 and 2015-16) were held to be invalid in terms of section 139(9) -

Assessee was an educational society registered under Karnataka Societies Registration Act. It was running educational institutions. Revenue was aggrieved by order of CIT(A), wherein he held that returns of income filed by assessee for relevant assessment years (2014-15 and 2015-16) were invalid in terms of section 139(9), and after holding so, CIT(A) was not justified in allowing claim for exemption under section 10(23C)(iiiab).Held: Processing of returns of income for both years, after holding them as invalid, was not in accordance with the law. Thus, CIT(A) was justified in holding that AO was not correct in processing the returns of income. Accordingly, in terms of section 139(9), it should hold that assessee did not file returns of income for relevant assessment year. Once returns of income were held to be invalid, there was no return of income available for making any assessment. In absence of any returns of income, the question of claiming or allowing exemption under section 10(23C)(iiiab) did not arise. Accordingly, CIT(A) was not justified in holding that exemption under section 10(23C)(iiiab) should be allowed to assessee.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2014-15 & 2015-16

SUBSCRIBE FOR FULL CONTENT