TaxTMI 
TaxTMI 
2025 (5) TMI 1553
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....ance has been made despite the same has been accumulated in the manner as provided in section 11(5) of the Act read with Rule 17 of the Income Tax Rules. 3. Charging of tax @30% instead of applicable tax u/s. 2 of Finance Act, 2013 @10% is bad in law and facts. 4. On the facts and circumstances of the case, the learned AO (CPC) has erred, both on facts and in law, charging of tax @30% instead of 10% merely on account of error in punching of certain information in the Form ITR-7. 5. On the facts and circumstances of the case, the learned AO (CPC) has erred, both onfacts and in law, computing the income the under normal provisions of the Act. 6. On the facts and circumstances of the case, the learned AO (CPC) has erred, both on facts and in law, in charging tax at the maximum marginal rate which also being contrary to the provisions of law hence being without jurisdiction and contrary to the facts, such taxation be quashed. 7. That the said disallowed has been made despite the amount has been shown in the Form ITR-7. That the said amount has been disallowed despite the same has been claimed by complying with all the statutory conditions sp....
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....ng eight principles; "(i) Law of limitation is based upon public policy that there should be an end to litigation by forfeiting the right to remedy rather than the right itself; (ii) A right or the remedy that has not been exercised or availed of for a long time must come to an end or cease to exist after a fixed period of time; (iii) The provisions of the Limitation Act have to be construed differently, such as Section 3 has to be construed in a strict sense whereas Section 5 has to be construed liberally; (iv) In order to advance substantial justice, though liberal approach, justice- oriented approach or cause of substantial justice may be kept in mind but the same cannot be used to defeat the substantial law of limitation contained in Section 3 of the Limitation Act; (v) Courts are empowered to exercise discretion to condone the delay if sufficient cause had been explained, but that exercise of power is discretionary in nature and may not be exercised even if sufficient cause is established for various factors such as, where there is inordinate delay, negligence and want of due diligence; (vi) Merely some persons obtained rel....
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....n of the ITR is as under:- C I Whether Registered u/s 12A/12AA? No ii If yes, then enter Registration No. iii Date of Registration (DD/MM/YYYY) iv Whether activity is,- 3. Your honour the undisputed facts are as under:- 3.1. The assessee is Registered u/s 12A/12AA since 1995 the copy of the certificate (at page no. 83-86.) 3.2. Kindly see ITR page no. 1 (at page no. 88), the details is given that the return was filed u/s 12. 3.3. The FORM NO. 10B was also filed along with the ITR: Audit report under section 12A(b) of the Income-tax Act, 1961, in the case of charitable or religious trusts or institutions (at page no. 81-82.) duly reflecting and claimed as such. All the details pertaining to the said claim of Rs. 43,272/- u/s. 11(1)(a) were duly apparent. 3.4. Kindly see ITR page no. 2 (at page no. 89) wherein point no. 6(iv) is appearing wherein the assessee claimed Rs. 43,272/- as "Amount accumulated or set apart / finally set apart for application to charitable or religious purposes to the extent it does not exceed 15 per cent. of income derived fr....
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....on is as under :- 1. GOA 1 ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE ORDER PASSED BY THE LEARNED AO (CPC) IS BAD, BOTH IN THE EYE OF LAW AND ON THE FACTS. 1.1. Facts of the case, in brief, are that the assessee is a trust. The assessee has e- filed the return of income (Kindly find enclosed herewith From page no. 87-100) on 06.9.2014 declaring Rs. 2,45,210 income after claiming exemption under section 11 of the Act. The assessee is registered under Section 12A of the Act. (Copy of the Certificate u/s 12A of the Act is enclosed at page no. 83-86. The assessee claimed Rs. 43,272/- Amount accumulated or set apart / finally set apart for application to charitable or religious purposes to the extent it does not exceed 15 per cent. of income derived from property held in trust wholly or in part only for such purposes under section 11(1)(a). (Kindly see paper book page no. 89 point no. 6 (iv)). 1.2. The return of income was processed under section 143(1)(a) of the Act on 15.11.2014 by the CPC Bangalore, however, the amount accumulated or set apart for application to charitable purposes to the extent it does not exceed 15 per cent of the income, cl....
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....ments, namely:- (i) any arithmetical error in the return; [or] (ii) an incorrect claim, if such incorrect claim is apparent from any information in the return. (b) the tax and interest, if any, shall be computed on the basis of the total income computed under clause (a); (c) the sum payable by, or the amount of refund due to, the assessee shall be determined after adjustment of the tax and interest, if any, computed under clause (b) by any tax deducted at source, any tax collected at source, any advance tax paid, any relief allowable under an agreement under section 90 or section 90A, or any relief allowable under section 91, any rebate allowable under Part A of Chapter VIII, any tax paid on self assessment and any amount paid otherwise by way of tax or interest; (d) an intimation shall be prepared or generated and sent to the assessee specifying the sum determined to be payable by, or the amount of refund due to, the assessee under clause (c); and (e) the amount of refund due to the assessee in pursuance of the determination under clause (c) shall be granted to the assessee: Provided that an intimation shall also be se....
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....on passed by the learned ao (cpc) is bad, both in the eye of law and on the facts. 2. GOA 2 ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED AO (CPC) HAS ERRED, BOTH ON FACTS AND IN LAW, IN DISALLOWANCE OF RS. 43,272/- UNDER SECTION 11(1)(A) OF THE ACT ON ACCOUNT OF AMOUNT ACCUMULATED OR SET APART FOR CHARITABLE OR RELIGIOUS PURPOSE. THAT THE SAID DISALLOWANCE HAS BEEN MADE DESPITE THE SAME HAS BEEN ACCUMULATED IN THE MANNER AS PROVIDED IN SECTION 11(5) OF THE ACT READ WITH RULE 17 OF THE INCOME TAX RULES. 2.1. Facts of the case, in brief, are that the assessee is a trust. The assessee has e- filed the return of income (Kindly find enclosed herewith From page no. 87-100) on 06.9.2014 declaring Rs. 2,45,210 income after claiming exemption under section 11 of the Act. The assessee is registered under Section 12A of the Act. (Copy of the Certificate u/s 12A of the Act is enclosed at page no. 83-86. The assessee claimed Rs. 43,272/- Amount accumulated or set apart / finally set apart for application to charitable or religious purposes to the extent it does not exceed 15 per cent. of income derived from property held in trust wholly or in part only for ....
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....should not be deprived from the legitimate claim merely due to wrong punching of information bonafidely. 2.6. Your honour kind attention is invited to section 12 which reads as under:- "Income of trusts or institutions from contributions 2. Any voluntary contributions received by a trust created wholly for charitable or religious purposes or by an institution established wholly for such purposes (not being contributions made with a specific direction that they shall form part of the corpus of the trust or institution) shall for the purposes of section 11 be deemed to be income derived from property held under trust wholly for charitable or religious purposes and the provisions of that section and section 13 shall apply accordingly." 2.7. Your honour, the accumulation upto 15% of the income under sec 11(1) is permissible, i.e 15% can be retained by a charitable organisation without applying it for charitable purposes in the year in which the income was accrued. Your honour kindly see intimation page no. 2 point no. 9(iv) wherein it is clearly stated that Rs. 43,272/- was accumulated and the same is upto 15%. Hence, your honour, On the facts and ci....
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....e Act is enclosed at page no. 83-86. The assessee computed tax as under:- S NO Particular Income Rate Tax 1 First 2,00,000 2,00,000 Nil Nil 2 Balance 45,210 45,210 10% 4521 3.2. The above calculation was made being eligible u/s 2 of the Finance Act, 2013. (kindly see paper book page no. 101) the scanned relevant portion is as under:- The First Schedule, Finance Acts - 2013 (See section 2) PART I INCOME-TAX Paragraph A (/) In the case of every individual other than the individual referred to in items (II) and (III) of this Paragraph or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (mit) of clause (31) of section 2 of the Income-tax Act, not being a case to which any other Paragraph of this Part applies- Rates of income-lax (1) where the total income does not exceed Rs 2,00,000 Nil (2) where the total income exceeds Rs. 2,00,000 but does not exceed Rs. 5,00,000 N 10 per cent of the amount by which the total income exceeds Rs. 2,00,000. (3) where the total income exceeds....
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....eing Form No. 10B was already furnished electronically, duly reflecting and claimed as such. All the details pertaining to the said claim were duly apparent. Hence, the assessee should not be deprived from the legitimate claim merely due to wrong punching of information bonafidely. Kindly see the Intimation page no. 3 point no. 28 wherein "TAX ON NORMAL RATE (20-21-22)" appears. The Ld. AO though filled this row by charging tax but charged @ 30% instead of 10%. The Ld. AO had not given any reason for charging @ 30% instead of 10%. Hence, your honour, charging tax @30% on entire income of Rs. 2,45,210 instead of applicable tax u/s 2 of the finance act, 2013 @ nil upto Rs. 2 Lacs and @10% on balance Rs. 45,210 is bad in law and facts. Your honour is requested to kindly allow the relief and order for charging of applicable tax as per u/s 2 of the finance act, 2013 which is @ nil upto Rs. 2 Lacs and @10% on balance Rs. 45,210. 4. The AR relied on the decisions held as under:- S NO PARTICULARS P NO 1 Chandraprabhu Swetamber Jain vs ACIT, Palghar Circle, on 12 August, 2016 Income Tax Appellate Tribunal - Mumbai 23-32 2 Rajasthan Cricket ....