TaxTMI 
TaxTMI 
TaxTMI 
2024 (4) TMI 1022
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....of generating revenue from running of educational institutions. 2. That on the facts of the case and in law, the ld. CPC erred in not allowing the statutory exemption of Rs. 91,79,434/- being 15% of the gross receipts u/s 11(1)(a) of the Act on the ground that the return of income and Form 10B was not filed by the assessee on time and the ld. CIT(A) erred in upholding the same. 3. That on facts and in circumstances of the case, the ld. CPC and CIT(A) failed to appreciate the law that income derived from the trust property Onkar Society For Engineering & Technological Research & Development has to be computed on commercial principles by virtue of Circular No. 5-P(LXX-6) of 1968 dated 19.06.1968. 4. That on the facts and circumstances of the case, the delay in filing the return of income and Form 10B was due to fire breakout in the office of the society where records were kept and outbreak of the pandemic covid-19 virus which caused severe disruption in the normal working conditions. 5. That further ground or grounds of appeal may be submitted on or before the date of hearing." 2. The assessee has also taken following additional ground of appeal: "That on the facts and in ....
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....1 and engaged in running of the educational institutions namely: Camellia Institute of Technology and Management situated at Halderdighi, G.T. Road, Hooghly-712134. At the time of hearing, ld. AR submitted before the bench that a fire broke out in the office premises of the assessee and most of the original office records, files, documents etc. burnt in the fire. Besides due to outbreak of pandemic Covid-19 virus and due to disruption in the working conditions, it became difficult on the part of assessee to consolidate the receipts and payments accounts of the assessee which in turn delay in finalizing the books of accounts of the assessee and also occurred delay in filing the return of income as well as Form 10B beyond the due date as prescribed under the Act. 4. The ld. AR further submitted before the bench that the issue raised by the assessee in the instant appeal regarding addition ground is qua the jurisdiction of the ld. assessing officer, CPC to make any addition/adjustment to the returned income unless intimation is given to the assessee for such adjustment either in writing or through electronic mode pursuant to the 1st proviso to section 143(1) of the Act the ld. A.R. s....
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....in writing or in electronic mode. We have also examined the records of assessment proceedings on e-portal relating to the assessee as placed before us and observe that the ld. Assessing Officer, CPC has not followed the mandate of first proviso of section 143(1)(a) of the Act and consequently, the order passed under section 143(1) of the Act is not as per the mandate of provisions of the Act and has to be quashed. The case of the assessee finds force from the decision dated 27th April, 2022 of the Tribunal, Ahmedabad Bench in the case of Arham Pumps in ITA No. 206/AHD/1989. The operative part of the order is extracted below:- 7. On going through the above section and proviso attached therein, the total income or loss shall be computed after making following adjustment mainly of any arithmetical error in the return. Incorrect claim, if such incorrect claim is apparent from any information in the return, etc. Thus, it is clear that a return can be processed u/s. 143(1) by making adjustments on six types of adjustments only. The first proviso to section 143(1)(a) make it very clear that no such adjustment shall be made unless an intimation is given to the assessee of such adjustment....
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....to Rs. 7,45,35,949/- comprising capital expenditure of Rs. 1,85,37,546/- and revenue expenditure of Rs. 4,68,18,969/- incurred during the year for charitable purposes of the trust and also raised 91,79,434/- being exemption u/s 11(1)(a) of the Act by ignoring the fact that the assessee has filed the return of income and Form 10B on time whereas the ld. assessing officer has held that the income tax return and form 10B were filed late. 10. On this context, the ld. AR vehemently argued that return of income as well as Form 10B was filed in time. As due to COVID pandemic outbreak in the country, the Hon'ble Apex Court vide its order dated 10.01.2022 extended the period of limitation for filing the return of income from 15.03.2020 to 28.02.2022 and the said period is to be excluded for computing the period of limitation. The ld. A.R. stated that the return of income filed on 30.03.2021, which was within the limitation period and so that the Form 10B was filed on 30.03.2021. The ld. A.R. also referred to the Board Circular F. No. 173/193/2019-ITA-I dated 23rd April, 2019 and submitted that the said Circular was issued by the Department before setting off COVID 19 pandemic, which states....