TaxTMI 
TaxTMI 
2022 (9) TMI 864
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....2.2021 on technical grounds and sustaining an addition of Rs. 1667017 on account of FDRs interest on the ground that an appeal against order dated 25.07.2019 passed by AO CPC, Bangalore under section 154 of the Income Tax Act, 1961 should have been filed instead of filing an appeal against the order dated 23.05.2019 passed by the AO CPC, Bangalore u/s. 143(1)(a) of the Act while the issue in both the orders passed by AO CPC is the same i.e. the addition of interest income against FDRs at Rs. 1667017 which have been added twice by A.O. CPC at Rs. 3336034/- u/s. 143(1)(a) of the Act while the interest at Rs. 1667017 which accrued in the year under appeal as per Form No. 26AS is incidental while carrying out the charitable activity of the appe....
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....liable be deleted from the assessment order. 2. That the appellant with your permission craves leave to add, alter, amend, modify, substitute and declare any ground of appeal on or before the final hearing, if necessary so arises before the appeal is disposed off." 2. The ld. AR reiterating the submissions as advanced before the First Appellate Authority submitted that the AO by his order u/s. 143(1) of the Act acted contrary to law and facts by determining the total income of the assessee at Rs. 33,36,034/- by resorting to make an addition of Rs. 16,68,017/-. For the sake of completeness, submissions advanced before CIT(A) repeated before ITAT are extracted hereunder: "1. That the assessee trust is running a college in the name....
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.... was subsequently rectified by the assessing officer to Rs. 16,68,017 via intimation issued u/s. 143(1) of the Income Tax Act dated 23.06.2019 7. The fact of the case are that assessee earned interest income of Rs. 16,68,017 on which was TDS was deducted amounting to Rs. 1,79,590 and exemption on such interest income was claimed u/s. 10(23C)(iiiab), since assesses is educational institution existing solely for educational purposes and not for purpose of profit and is substantially financed by government. 8. The assessing officer clearly erred in law and on facts in failing to appreciate the settled principle that when a debatable question arises and when the issue is contentious, prima facie adjustment u/s. 143(1)of the Ac....
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....institution. 10. Also that the whole income of university or other educational institution covered by clauses 10(23C)(iiiab) and 10(23C)(iiiad) would be exempt from tax without any conditions except that it must be existing solely for educational purposes and not for purposes of profit. Thus if incidentally any income in the nature of business is earned by such educational or medical institution the same would not be liable to tax. 11. Further the seventh proviso to 10(23C) enables the trust or institution to carry on. business activity subject to the condition that the activity must be incidental to the main activity and separate books of accounts are to be maintained. "Income" in the case of charitable trust or instituti....
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....before the First Appellate Authority against the order passed u/s. 143(1) and has not challenged the order passed u/s. 154. Accordingly, it was her submission that the appeal of the assessee may be dismissed. 5. The ld. AR in reply submitted that the addition made by the AO is contrary to law and facts and the CIT(A) should have granted relief to the assessee on the basis of material available on record. 6. I have heard the submissions and perused the material on record. It is a fact not in dispute that before the First Appellate Authority the assessee challenged the 143(1) order dated 23.05.2019. The assessee apparently ignored the fact that a Rectification Application u/s. 154 had been filed by the assessee challenging the 143(1) or....