2024 (2) TMI 532

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....amount receipt but the land received as gift in kind by the assessee-trust, which does not fall under purview of income, so not liable to tax, as it is a capital receipt. 2. The assessee has received the Gift in kind i.e. land from trustee, duly registered gift deed with the sub-registrar, without any consideration and the same could not be applied, accumulated or invested, therefore, it cannot be treated as income. The gift received in kind- land should not have been treated as income of the assessee trust, as it will not come under the definition of income u / s 2(24) of the act, therefore, it will not be the income of the trust u / s 12(1) of the act, that includes the income from voluntary contribution and the acceptance of gift in kind will not come under the purview of income u/s 2(24)(iia) for the purpose of section 11 of the act, that includes the income of corpus donations - exempted u/s 11(1)(d). The assessee has not received any corpus donation, but received a gift in kind - land, from trustee, for the purpose of to carry out trust charitable object purpose activities. Which is irrevocable, Gift in nature. It should have been held to be the cap....

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....us relates to the adjustment made to the income returned by the assessee in the intimation made by the CPC u/s 143(1) of the Act. The adjustment relating to entire income of the assessee trust including corpus donation, voluntary donation and other income, amounting in all to Rs. 16,40,71,000/- being denied exemption claimed u/s 11/12 of the Act to the assessee and treated as entirely taxable in the intimation u/s 143(1) of the Act. This adjustment to the total income of the assessee was confirmed by the ld. CIT(A). 4. A perusal of the intimation u/s 143(1) of the Act reveals that the assessee had disclosed voluntary contribution forming part of corpus to the tune of Rs. 16,40,71,000/- along with voluntary contribution other than corpus funds amounting to Rs. 14,000/-. The assessee had also shown other income of Rs. 8,967/- in its return of income filed. Against the same, the assessee had shown application of income to the tune of Rs. 74,061/-. The same are reflected at page No.14 of the intimation as under:- Sl. No. Particulars Reporting Heads Amount As provided by Taxpayer As computed u/s 143(1)   01 Income Details Voluntary Contributions oth....

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....   (vi)Amount in addition to amount referred to in (iv) above, accumulated or (vi) set apart for specified purposes if all the conditions in section 11(2) and 11(5) or third proviso to section 10(23C) are fulfilled 0 0     (vii) Amount eligible for exemption under section 11(1)(c) (c) Approval number given by the Board (d) Date of approval by board 0 0     (viii) Total [4i+4ii+4iii+4iv+4v+4vi +4vii] 74,061   5. The assessee was denied the application of its funds as above in the intimation made u/s 143(1) which is evident from a bare perusal of page no.14 of the intimation which is reproduced above; also its entire income including corpus donation, voluntary contribution and other income amounting in all to Rs. 16,40,93,967/- was subjected to tax and treated as its total income while the assessee had claimed the entire amount as exempt. Assessing its total income at Rs. 16,40,93,967/-, tax demand of Rs. 8,59,78,930/- was raised thereon in the intimation made u/s 143(1) of the Act. Thus, in effect, while the assessee had claimed its entire income exempt in terms of Sections 11 & 12 of the Act....

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.... the mistake only after receiving the intimation under section 143(1) on 20/9/2022 from CPC and by that time the last due date for filing revised return for F.Y. 2020-21 had already lapsed." 9. Before us, it was pointed out that the copy of Form 10B was filed to the ld. CIT(A) and our attention was drawn, in this regard, to the submissions made before the ld. CIT(A) reproduced at page no.10, paragraph no. 4.3, as under:- "4.3 The appellant Trust's Audit report was signed on 19/10/21 with UDIN: 21035601AAAAGJ6460 along with it, auditor has prepared the balance sheet, income expenditure statement of income, as per Trust act, also 70 days prior to filing the ITR. The appellant Trust's ITR was filed on 28.12.2021, i.e. well within the due date of 31.12.2021 as prescribed u/s 139(1). Audit Report form 10B was filed on 10/10/2022, ack. No. 630549040101022 for AY 2021-22 which was attached with Auditors certified balance sheet, income & expenditure schedule IX-C & Audit report dated 19/10/2021. Annexure (1) for Audit Report, 10 B and certified balance sheet, income & expenditure schedule IXC, auditor's certificate dtd. 12/10/22 are included for your ....

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....he assessee without going into the merits. Further, no relief was granted to the assessee even when the assessee filed the application under section 154 of the Act. We find that while dealing with similar facts the Co-ordinate Bench of the Tribunal in Trinity Education Trust v. ITO [IT Appeal No. 669 (Srt.) of 2018, dated 28-2-2022], decided the issue in favour of the taxpayer by observing as under: "8. We have considered the rival submissions both the parties and perused the order of lower authorities carefully. We find that there is no dispute that at the time of filing of return of income, the audit report has required under Form 10B was not uploaded once uploaded on the system consequently the AO/CPC not allowed the exemption claimed under section 11. Assessing Officer/CPC brought the entire receipt as taxable income. On receipt intimation under section 143(1) of the Act the assessee uploaded in Form 10B and filed application for rectification under section 154 of the Act. The application of the assessee was rejected on the ground report in Form 10B was not furnished before due date of return of income. The ld. CIT(A) dismissed the appeal of the assessee by taking view....