TaxTMI 
TaxTMI 
TaxTMI 
2025 (6) TMI 296
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....e making the impugned disallowance of application of income u/s 143(1) of the I.T. Act and therefore the disallowance is liable to be deleted and returned income be accepted. 3. For that the Ld. CIT(A) erred in confirming the action of CPC in disallowing the amount of Rs. 12,96,197/- on account of application of income during the year without assigning any specific reason. 4. For that the Ld. CIT(A) erred in confirming the action of CPC Bangalore in disallowing the claim of exemption u/s 11 in the intimation u/s 143(1) for delay in filing audit report in Form 10B when there was no mismatch of data uploaded in the audit report and the data contained in the return of income which was not disturbed by way of selection under scrutiny. 5. For that the Ld. CIT(A) erred in confirming the action of CPC Bangalore in disallowing the claim of exemption u/s 11 in the intimation u/s 143(1) for delay in filing audit report in Form 10B when the requirement was only directory and not mandatory and therefore the exemption should not be denied only for technical breach of law and procedural irregularities 6. For that the Ld. AO erred in disallowing the claim of exemption in the intimation u/....
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....of facts and submission of the appellant. The appellant had filed its original return of income for AY 2020-21 on 31.03.2021 i.e. after the extended due date of 15.02.2021 claiming exemption of Rs. 13,66,994/- u/s. 11 of the I.T. Act however Form 10B was not filed within due date. 5.3. The A.O., CPC disallowed the exemption claimed by the appellant in its ITR under section 11 of the Act during processing of ITR filed for A.Y. 2020-21 u/s. 143(1) of the Act on a ground that the audit report in Form 10B was furnished after due date by the appellant. 5.4 In this regard, it is to mention that Audit Report in Form 10B was completed on 07.06.2023, that is much after the date of filing of return and after receiving intimation u/s. 143(1) of the Act. Hence, the appellant has not followed the procedural part and filed return without being audited. Nature of adjustment under section 143(1) is as under: Total income or loss is computed under Section 143(1) after making the following adjustments: * Arithmetical error in the return * Any incorrect claim which is apparent from any information in the return where incorrect claim which may include the following: * The claim of an item ....
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....a-700001, do solemnly affirm and declare as under: 1. That I was looking after the Audit, Income Tax Return filing and Tax matters of M/s Seth BD Goyal Charitable Trust for Assessment Year-2020-21. 2. That in December 2021, Sri Birdhi Chand Goyal, trustee of M/s Seth B D Goyal Charitable Trust handed me order under section 143(1) dated 30.11.2021 for Assessment Year-2020-21 to file an appeal before CIT(A). 3. That I kept the order on my table. However I could not attend office subsequently as the third Covid wave just started. Later on after a month when I joined, there was huge piling of work on my table. I could not remembrance the pending work and the order got misplaced and therefore I could not keep track of filing the appeal. 4. Later on, in the month of May 2023, the trust wanted to know the status of appeal from me. On searching all the files, it was unfortunately noticed that the order against which appeal was to be filed was by mistake kept in another file. 5. That delay of 384 days in filing appeal was accidental and due to lapse on my part and was unintentional. The trust was not gaining any benefit by delaying the appeal. 6. That the above statements are tr....
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...., there are restrictions within section 143(1)(a) which lists down six specific adjustments which can be made in the processing of return. 7.2. Further, in respect of any adjustment which is proposed to be made, a prior intimation is required to be served on the assessee, either in writing or electronically, as contained in 1st proviso to section 143(1)(a) of the Act. Ld. Counsel has evidently demonstrated before us, the failure on the part of CPC to issue such prior intimation to the assessee before making an adjustment by way of disallowing the claim of exemption u/s. 11 of the Act. Thus, there are two aspects which emerges on this issue as to whether the disallowance made is a permissible adjustment contained in sec. 143(1)(a) and whether this adjustment, if permissible, has been made in compliance to 1st proviso to sec. 143(1)(a) of the Act. 8. Considering the facts on record and the perusal of the provisions contained in sec. 143(l)(a) of the Act, we find that on both the aspects, the revenue fails. This position has not been controverted by Ld. Sr. DR also. Even if we assume for a moment that such an intimation was given to the assessee in accordance with the 1st proviso,....