2021 (3) TMI 946

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....ome instead of gross receipt of Rs. 2,06,00,000/- as done by the CPC. The rectification being mistake apparent from record, therefore, the claim made in the return should be allowed. 2. The total income computed and demand raised is wrong and bad in law and should be cancelled. 3. The interests charged u/s 234B and u/s 234C is wrong and bad in law and not at all leviable." 3. The assessee is a Trust formed via Trust Deed and registered u/s 12A (a) of the Income Tax Act, 1961. For the A.Y. 2014-15 the return of income in Form ITR-7 was filed on 24.09.2014 declaring income of Rs. 48,020/- after claiming exemption u/s 11 of Income Tax Act and "Nil" tax payable as the assessee had complied with the provisions of section 11 ....

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....omputation of income capital gains of Rs. 99,125/- as part of the total income and has subjected the same for the provisions of Section 11(1) of the Income Tax Act, 1961. As against the said total income the CPC in the intimation u/s 143(1) has treated sum of Rs. 2,06,00,000/- being the gross consideration received as the capital gains. The Ld. AR submitted that the account statement of Birla Sun Life Mutual Fund in the name of the assessee wherein redemption of 1,03,206.023 units has been made resulting in receiving of gross sale proceeds of Rs. 2,06,00,000/-. As against this, the purchase cost is Rs. 2,05,00,875/- resulting in net gain of Rs. 99,125/-. The acquisition of investments has not been considered as application of funds at any p....

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....and the actual net gain remains the same. The rectification might not be correct under the statute as there is a change of head but when we go by the original return it clearly set outs that the net gain of Rs. 99,125/- has to be taken into account by the CPC. In the present case, the assessee Trust has accumulated and set apart an amount of Rs. 5,96,00,000/- for financial year ended on 31/03/2016 and furnished the said information to Assessing Officer by filing Form 10 on 29/09/2014 i.e. before the time specified u/s 139(1) of the income Tax Act and invested the said amount into fixed deposits. The assessee has also claimed accumulation u/s 11(2) of Rs. 5,96,00,000/-/in the return of income. Thus, the assessee satisfied all the conditions ....