TaxTMI 
TaxTMI 
2021 (1) TMI 1004
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....by the assessee read as under : 1. "The learned CIT (A) has erred in disallowing the exemption claimed u/s 11 (1) (a) of Rs. 1712592 and the amount which was set apart u/s 11 (1) (a) amounting to Rs. 437842 on the ground that the appellant has not satisfied section 11 & 12 although appellant has satisfied all the condition of section 11 & 12. The appellant craves, leaves to add amend and withdraw any ground of appeal before the order is passed." 3. Briefly stated, the facts of the case are that the assessee filed its return of income for the assessment year (AY) 2014-15 on 30th September, 2014 declaring total income at Rs. Nil. The said return was processed u/s 143 (1) of the Act, by disallowing claim of exemption u/s 11 and det....
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....detailed the provisions of Sec. 12A(1)(b) and have contended that the trust has got its accounts audited and auditors have filed the audit report in Form 10 B on 29.09.2014 and the return of income was filed on 30.09.2014. The appellant has further contended that non-mention of the name of the auditor in the return of income is purely technical in nature and therefore the learned AO should not have rejected the application u/s 154 of the Act. In regard to such contention of the assessee it is stated that the appellant in their submission has nowhere brought out any mistake apparent from record in the order u/s 143 (1) which was sought to be rectified by the application u/s 154 made to the AO (CPC). It has further mentioned that what could b....
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....ave sought to rectified. Therefore, your application for rectification u/s 154 is rejected for the following reasons: As seen from the e-filed return of income filed by the assessee, the assessee has claimed exemption u/s 11 but has not furnished details of audit in the SCH, Audit Information - in view of the above, this rectification request is rejected". The Ld. counsel submits that the AO has passed the order u/s 143 (1), disallowing all the expenditure claimed in the return of income of Rs. 17,12,592/- and amount set apart of Rs. 4,37,842/- ; in short the AO has brought to tax the entire income (without deduction of expenditure) and raised the demand of Rs. 10,77,730/-. It is stated by him that the appellant -Trust got its a....
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....n (supra) relied on the Ld. counsel, for the AY 2016- 17, the assessee filed its return of income declaring nil income after claiming exemption u/s 11 of the Act. While processing the return of income u/s 143 (1) of the Act, the AO (CPC) disallowed an amount of Rs. 20,01,732/- and treated it as income of the assessee. Against the intimation issued u/s 143 (1) of the Act, the assessee made an application for rectification u/s 154, stating that since 85% out of the income received has been applied for the objects of the Trust, exemption u/s 11 of the Act is available. The aforesaid application u/s 154 of the Act was dismissed by the AO (CPC). The Tribunal vide order dated 11.11.2020 held that: "3. We have considered rival submissions....