2021 (5) TMI 861

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.... 1. "That where the appellant is a registered society with charitable objects and is running two recognized educational schools and in respect of income derived therefrom (aggregate receipts Rs. 1,46,73,932/-) filed its return of income in Form ITR-7 u/s. 139(4A) of the Act, declaring total income of Rs. 2,40,752/- without claiming any exemption u/s. 11/12/10(23C)(iiiad)/10(23C)(vi) of the Act, as the society is neither registered u/s. 12A nor approved u/s. 10 (23C) (vi) of the Act. In the intimation u/s. 143(1) dated 10.03.2016 CPC charged maximum marginal rate without allowing the basic exemption limit which was challenged before the Id CIT(A)-40, New Delhi, who in her order dated 26-07-2019 was wrong: (i) In holding that ther....

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....e computing the income at the time of processing the income of Rs. 71,372/- was considered twice thereby the income was computed by CPC at Rs. 3,12,124/- instead of 2,40,752/-. Further, the tax was computed at the maximum marginal rate at 30% at total income of Rs. 3,12,124/- instead of applying the normal slab rate. 4. Aggrieved against this, the assessee preferred appeal before Ld. CIT(A) who after considering the submissions, partly allowed the appeal of the assessee. Thereby, the Ld. CIT(A) directed the CPC to consider the income under head "profits and gains", "business and profession" of Rs. 1,69,380/-. Therefore, the amount who was considered twice to be deleted. However, in respect of applying the maximum marginal rate, the expla....

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....ppreciate that the assessee society being not registered/approved u/s. 12A or 10(23C)(vii) of the Act, found difficult to upload the income in ITR-7. He further contended that Ld. CIT(A) failed to appreciate that in the event of any infirmity/defect in filing of ITR before processing the return u/s. 143(1) of the Act and charging of maximum marginal rate, CPC was required to give an opportunity to the assessee u/s. 139(9) of the Act. 7. Ld. Sr. DR opposed these submissions and supported the order of Ld. CIT(A). 8. I have heard the rival submissions and perused the material available on record. It is the contention of the assessee that the assessee's society is not registered u/s. 12A of the Act, is not approved u/s. 10(23C)(iiiad)....

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....(A) has taken contradictory view. I therefore, considering the totality of facts of the present case hold that Ld. CIT(A) was not justified in taking contrary stand in this case of the assessee. Hence, the Assessing Officer is hereby directed to charge tax at normal rates. 10. Now, coming to ITA No. 7643/del/2019 for the Assessment Year 2017-18. The assessee has raised following grounds of appeal:- 1. "That where the appellant is a registered society with charitable objects and is running two recognized educational schools and in respect of income derived therefrom (aggregate receipts Rs. 2,21,32,550/-) filed its return of income in Form ITR-7 u/s. 139(4A) of the Act, declaring total income of Rs. 2,96,610/- without claiming any....