TaxTMI 
TaxTMI 
2023 (11) TMI 735
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.... the principles of natural justice 2) The CIT(A) erred in not considering the contention of the appellant in proper perspective that when a debatable issue arises, it cannot be adjusted merely by way of intimation under Section 143(1)(a) of the Act, since sec.143(1) deals only with prima facie adjustments in respect of any apparent information in the return. In other words, the CIT(A) erred in not considering the fact that when a claim made by the appellant requires further inquiry, it cannot be disallowed without hearing the parties and / or giving the party an opportunity to support its claim which is possible u/s. 143(3) and not u/s. 143(1). 3) The CIT(A) erred in not appreciating the fact that what can be taxe....
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....ct. The assessee's tax liability was of Rs. 4,517 on the income declared. The assessee received error message in the 143(1) proposal stating that the trust has not e-filed the audit report in Form 10B one month prior to the due date for filing return u/s. 139(1), hence exemption claimed u/s. 11(1)(d) and Sr. No. 4i to 4viii of Part B- TI is not allowable. The assessee raised objections before the CPC that audit report could not be filed within the stipulated date due to several glitches in the New E filing portal and also the CA faced technical glitches in filing the same. The filing of audit report is directory and not mandatory and exemption cannot be denied merely for that reason. It was submitted that the above grievance of the assessee....
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....mits that the income has to be computed on the total income and not on the entire gross receipts. The CPC has considered the entire gross receipts as income which is not correct. He submitted that the total income computed by the assessee is Rs. 3,36,850 on which assessee has paid taxes. I note that ITAT Chennai in ITA No.1327 & 1328/Chny/19 dated 5.9.2019 in the case of M/s. Srinivasa Educational Trust on this issue has held as follows:- "4. We heard Shri Sridhar Dora, the Ld. Departmental Representative also. We find some substance in the submission of the Ld.counsel for the assessee. Admittedly, registration under Section 12AA of the Act was not available to the assessee during the year under consideration. Therefore, inco....
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....for computation of income as per the Act, the matter should go back to the AO for computation of total income in the above terms. Accordingly, this issue is remitted to the AO for the purpose of verification and computation of total income as per law after giving reasonable opportunity of being heard to the assessee. The assessee is directed to file necessary documents and not to seek unnecessary adjournment. 8. Regarding ground No.4, the ld. AR reiterated the submissions made before the CIT(Appeals) and submitted that audit report could not be filed in time due to technical glitch in the e-portal of the department. In this regard, the assessee filed its grievance before the CPC which was not considered. He submitted that filing of audit....