2024 (7) TMI 650

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....ed from the order of the CPC, Bengaluru (in short, 'the A.O.'), passed undersection 143(1) of the Act, date of order 11/10/2021. 2. The assessee has taken the following grounds:- "1. On the facts and in the circumstances of the case and in law the learned Commissioner of Income Tax (Appeals) erred in confirming rejection / disallowance of claim of revenue expenditure incurred during the year amounting to Rs. 18412704/- u/s 11(1) of the Act. Provisions of the Act ought to have been properly construed and regard being had to facts of the case claim of revenue expenditure of Rs. 18412704/- u/s 11(1) of the Act should not have been rejected / disallowed. 2. On the facts and in the circumstances of the case and in law the learned Commission....

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....as a charitable trust which was duly rejected during the processing of return u/s 143(1) of the Act amount to Rs. 1,84,12,704/- and also the disallowance made amount of Rs. 37,54,222/- being accumulated and set apart for application to object of the assessee trust. Without giving the reasonable opportunity and without issuance of any intimation, the entire adjustment was done under section 143(1) of the Act. Later on, the assessment was framed under section 143(3) by an order dated 20/09/2022 where the entire expenses u/s 11(1) and the adjustment of accumulated and set apart profit for application to the object of the trust was duly accepted and the order is passed with any demand of tax. The aggrieved assessee filed an appeal before the ld....

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....authorised the Commissioners of Income-tax (Exemptions) to condone the delay and is as under "Accordingly, in continuation of earlier Circulars issued in this regard, with the view to prevent hardship to the assessee and in exercise of powers conferred under section 119(2)(b) of the Act, the CBDT has decided that where the application for condonation of delay in filing Form 9A and Form 10 has been filed, and the Return of Income has been filed on or before 31st March of the respective assessment years i.e. Assessment Years 2016-17, 2017-18 and 2018-19, the Commissioners of Income-tax (Exemptions) are authorised u/s 1 19(2)(b) of the Act, to admit such belated applications for condonation of delay in filing Return of Income and decide on m....

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....tertaining such applications for condonation of delay in filing form No. 9A and Form No. 10, shall satisfy themselves that the applicant was prevented by reasonable cause from filing such Form within the stipulated time. In respect of Form No. 10, the Pr. Chief Commissioner/Chief Commissioner of Income-tax, as the case may be, shall also satisfy themselves that the amount accumulated or set apart has been invested or deposited in anyone or more of the forms or modes specified in sub-section (5) of section 11 of the Act. 4. Further, the Pr. Chief Commissioner/Chief Commissioner of Income-tax, as the case may be, shall preferably dispose the application within three months of receipt of the application" 5.12 In this case the return is fil....

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..../09/2022. The reply of the assessee was duly considered and verified from the Form 10B for the F.Y. 2016-17 relevant to the A.Y. 2017-18 and found satisfactory. Accordingly, the assessment is completed u/s 143(3) r.w.s. 144B of the Income Tax Act, 1961 and income of the assessee is assessed at Rs. 28,61,220/-. Here, it is pertinent to mention that this is a limited scrutiny case. Hence, the demand u/s 143(1)(a) of the Income Tax Act, 1961 will exist till the disposal of appeal. Hence, the assessment order is passed u/s 143(3) r.w.s. 144B of the I at Rs. 28,61,220/-. Charge interest as per income tax act and , computation sheet and demand notice accordingly." 6. As per this order, the entire issue is duly accepted in the proceedings und....