Section 11 Exemption Allowed in Updated Return for Pre-AY 2023-24 | ITAT

Case Details: Indian Medical Association vs. Deputy Commissioner of Income-tax, Exemption - [2026] 183 taxmann.com 735 (Pune-Trib.)

Judiciary and Counsel Details

• R. K. Panda, Vice President & Ms Astha Chandra, Judicial Member
• Nikhil S Pathak for the Appellant.
• Vidya Ratna Kishore for the Respondent.

Facts of the Case

The assessee was a public charitable trust formed under the Bombay Public Trust Act, 1950. It filed its updated return of income under section 139(8A) after offering short-term capital gain and long-term capital gain and claiming exemption under section 11.

During the assessment proceedings, the Assessing Officer (AO) denied the assessee’s exemption claim. The AO considered that the Income Tax Act, as amended by the Finance Act, 2017, makes it mandatory for charitable and religious trusts to file their return of income within the due date specified under section 139(1) to claim exemption under section 11.

Thus, the exemption cannot be claimed in an updated return if no original return is filed. Aggrieved by the order, the assessee preferred an appeal to the CIT(A). The CIT(A) confirmed the order of the AO, and the matter then reached the Pune Tribunal.

ITAT Held

The Tribunal held that the relevant portion of the Memorandum explaining the Finance Bill, 2023, states that the exemption under section 11 will be available only if the return of income is furnished within the time allowed under section 139(1) or section 139(4). The amendment was introduced to exclude returns filed under section 139(8A). It was also submitted that, subsequent to the amendment brought in with effect from the assessment year 2023-24, no exemption under section 11 would be allowable when the same has been claimed in an updated return under section 139(8A).

Therefore, before the assessment year 2023-24, even if the same has been claimed in an updated return under section 139(8A), the exemption under section 11 cannot be denied. Accordingly, the assessee cannot be denied the exemption under section 11 on account of filing the updated return.

List of Cases Reviewed

• Dy. CIT v. Bishnupur Public Education Institute [2025] 172 taxmann.com 307 (Kol-Trib) (para 16) followed

List of Cases Referred to

• Dy. CIT v. Bishnupur Public Education Institute [2025] 172 taxmann.com 307 (Kol-Trib) (para 10).