2025 (6) TMI 483

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.... (CPC) u/s. 154 of the Income-tax Act, 1961 (hereinafter referred to as the "Act"), dated 24.09.2024 for Assessment Year 2022-23. 2. Grounds taken by the assessee are reproduced as under: 1. On the facts, and in circumstances of the case, and in law, learned Commissioner of Income-tax (Appeal) disposed of the appeal without fixing hearing and giving opportunity of being heard. 2. On the facts, and in circumstances of the case, and in law, learned Commissioner of Income-tax (Appeal) erred in upholding action of the Centralized Processing Centre (CPC), Bengaluru in disallowing claim of exemption under section 11 of the Income Tax Act, 1961 without assigning any particular reason, and merely on the basis of providing old r....

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....t Rs. 1,86,512/- after claiming exemption u/s.11 of the Act, by mentioning the old registration number. CPC processed the return whereby total income was determined at Rs. 32,27,675/-. Assessee filed an application before CPC u/s. 154 of the Act, claiming for rectification of mistake apparent from record which was processed and order was passed on 24.08.2023 against which assessee went in appeal before the Ld. CIT(A). 3.1 Assessee claims that CPC has denied exemption u/s.11 of the Act, resulting into addition of the entire gross receipts. According to the assessee, without prejudice, it was claimed that even on commercial prudence, entire gross receipts cannot be brought to tax. Corresponding expenditure incurred by the assessee to carry....

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....order without dealing with the merits of the case. Admittedly, it is a fact on record that assessee does not have the renewed registration u/s.12A of the Act for the year under consideration. Ld. Counsel for the assessee admitted that in absence of such registration for the year under consideration, claim of exemption u/s.11 of the Act, is not available, but at the same time what can be brought to tax is the net income for the year after allowing expenditure and depreciation for caring out its activities during the year. 6.1. Taking into account the facts of the case, we hold that gross collection for the year cannot be taxed as income as done by CPC while processing the return of the assessee. Commercial prudence requires to allow deduc....