2025 (8) TMI 1497

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

...."Ld. CIT(A)"] for A.Y. 2022-23. 1.1 The impugned order itself is on the basis of certain adjustments made by the Ld. AO u/s 143(1) of the Act. The brief facts are that the assessee filed his return of income on 07.11.2022 at "Nil" income. However, the total income of Rs. 6,75,000/- was determined u/s 143(1) of the Act. This enhancement was affected because there was a discrepancy between the exemption claimed in the return and Form 9A filed by the assessee. The Ld. CIT(A) confirmed the action of the Ld. AO with the following findings: "It has been admitted by the appellant that incorrect information has been inadvertently has been furnished in the return of income. Therefore, the appellant was required to file a revised return o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... From the above it is clear that the appellant has not correctly reported the application u/s 11(1). As has already been stated earlier the only remedy to correct an error in filing of return is by revising the return. In view of the above, I am of the considered opinion that as the adjustment has been made on account of admitted discrepancy in the figures reported in return of income vis-à-vis Form 9A, therefore the relief claimed is not allowable. Therefore, this ground of appeal is dismissed. In the result, appeal is dismissed." 1.2 Aggrieved with the action of Ld. CIT(A), the assessee has approached the ITAT through the following grounds: "1. That on the facts and in the circumstances of the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....own in the Profit/loss statement and the balance of Rs. 20,00,000/- was a onetime grant received for the purpose of the setting up of the institute and the same was accordingly utilized in acquisition of fixed asset required for smooth functioning of the institute. As per the scheme of the ITR form 7, purchase of asset is required to be reported in the ITR net of the subsidy/financed amount, accordingly investment in fixed assets and its adjustment through grant received were not readily visible in the ITR form filed. Thus, actual grant received by the assessee was Rs. 45,00,000/- and the actual amount utilized by the assessee for the purpose of its object were Rs. 29,29,725/-. In addition Rs. 8,95,275/- is deemed to have been applied on th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....er prescribed. Any unspent balance is required to be returned to the sponsoring agency and cannot constitute any surplus in the hands of the assessee. Thus, the above details duly establishes that the assessee does not have any scope of earning any income and the unspent balance is a liability in its hand The assessee is also enclosing herewith the utilization certificate submitted in form GFR 12-A (rule 238(1) for the period ended on 31.03.2022 with the sponsoring agency of the Government of India. On perusal of the certificate it would be observed that the unspent balance is required to be reported as "Grant Position or the yearend, which is required to be taken as opening balance in Para 3 & 4 of the utilization certificate unde....