AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 1366
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....ification order passed by the Centralized Processing Centre (CPC), Bengaluru, under section 154 of the Income-tax Act, 1961 [hereinafter referred to as "the Act"] dated 03.08.2023. Facts of the Case 2. Briefly stated, the facts of the case, as emerging from the record, are that the assessee is Gujarat Technological University, a State Technical University established in the year 2007 under Gujarat Act No. 20 of 2007. The assessee is registered under section 12AA of the Act with effect from 01.04.2010 vide order dated 17.06.2010. 3. For the relevant previous year, the assessee filed its return of income under section 139(1) on 23.10.2019, accompanied by a provisional audit report in Form No. 10B. The return disclosed total receipts ....
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.... 6. In the rectification order dated 03.08.2023, CPC recorded the processing outcome in tabular form, wherein the claim of exemption under section 11 aggregating to Rs. 1,26,47,05,336/- was disallowed in toto. Consequently, the income was computed without such exemption, and tax was determined at normal rates along with interest under sections 234B and 234C. After giving credit for advance tax of Rs. 26,869/-, a demand of Rs. 69,40,22,390/- was raised. The order also indicated that the reasons for variance/demand were available in the detailed intimation sent to the assessee's registered e-mail ID. Though the order did not specifically narrate the cause for denial of exemption, the subsequent proceedings before the CIT(A) make it clear that....
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....ngly, the appeal was dismissed. 9. The assessee has come up in further appeal before us, raising the following grounds of appeal: All the grounds of appeal in this appeal are mutually exclusive and without prejudice to each other. 1. The learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre ['CIT(A)'] has erred in fact and in law in upholding the rectification order passed by the learned Deputy Director of Income Tax, CPC, Bengaluru ("the AO") u/s 154 of the Income-tax Act, 1961 ("the Act"), which is erroneous, invalid, and unsustainable in law. 2. The learned CIT(A) erred in fact and in law in denying the exemption u/s 11 of the Act amounting to Rs. 1,26,47,05,336/- despite the fact tha....
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....account that the delay in filing the Income Tax Return for AY 2019-20 had already been condoned by the competent authority, a fact which directly impacts the eligibility of the Appellant for exemption u/s 11 of the Act. 8. Without prejudice to above, the learned CIT(A) has erred in dismissing the grounds of appeal related to exemption under section 11 as 'not maintainable', without awaiting the outcome of the condonation applications filed before the specified authorities, thereby denying the Appellant an opportunity to be heard fairly and violating principles of natural justice. 9. The learned CIT(A) erred in fact and in law in confirming the levy of interest u/s 234B. 10. The learned CIT(A) erred in fact....
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.... of professional negligence of the then statutory auditor, as evidenced by the legal notice dated 05.12.2023 issued by the University's advocate to the said auditor and the detailed affidavit dated 20.05.2024 sworn by the auditor himself. In the said affidavit, the auditor has accepted responsibility for the delay in filing the relevant forms and in responding to various notices issued by the Income Tax Department and has also affirmed that the exemption under section 11 was claimed in good faith. The AR submitted that the assessee has been granted exemption under section 11 in the past as well as in subsequent years, and there is no dispute on its eligibility. Reliance was placed on the principle that procedural lapses should not defeat su....
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....Form No. 10 and Form No. 10B within the prescribed time limit. There is no finding by the CIT(A) that any of the substantive conditions for claiming exemption under section 11 have not been fulfilled. 15. It is also an admitted position that the assessee has subsequently filed the prescribed forms, and that its registration under section 12AA and the genuineness of its activities have not been doubted. The delay has been explained by the assessee with cogent evidence, including a legal notice issued to its statutory auditor and the affidavit of the said auditor accepting responsibility for the procedural lapse. The explanation is bona fide and supported by circumstances such as portal-related difficulties and professional negligence. ....