2025 (10) TMI 305

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....ng the addition made by the CPC in respect of Foreign Contribution received of Rs. 43,16,125/- by observing that no revised return was filed by the assessee as directed by the CPC classifying the Foreign Contribution of Rs. 43,16,125/- in corpus fund and other than corpus fund." 2. Briefly stated the facts are that the assessee a society registered u/s 12 of the Act filed its return of income on 27.01.2022 declaring Nil surplus from its charitable activities. Return was processed by the CPC, wherein the foreign contribution of Rs. 43,16,125/- received by the assessee trust was treated as income of the assessee. The assessee trust filed a rectification petition u/s 154 of the Act whereby the assessee sought exemption for the amount of Rs.....

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....ing the year is also certified by the auditors (placed at page 54 of the PB). The CPC also does not dispute the receipt of foreign donations as aforesaid. The only objection raised by CPC is that it was not properly depicted in the relevant column in the return as originally filed on 27.01.2022 and further that to be able to confer the benefit, the Appellant Trust shall have to file a revised return u/s 139(5) of the Act. However, by that time, the limitation for filing a revised return u/s 139(5) of the Act had supervened, and so despite attempts made by the Appellant Trust, it failed to convey the same through the system because it would not accept it. In this way, the NFAC wrongly inferred that the Appellant Trust had made factually inco....

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....exercise could not be consummated successfully by the assessee due to the intervention of limitation for filing of a revised return u/s 139(5) of the Act. There was thus a sufficient and a wholly plausible cause for the failure of the Appellant Trust to file the revised return as desired by the CPC. The NFAC failed to appreciate these basics in law and procedure thereby compounding the error. PRAYER: In the aforesaid circumstances it is most respectfully prayed that the benefit of exemption u/s 11 and 12 of the Act be kindly granted to the Appellant Trust in respect of foreign donations of Rs. 43,16,125/- which stands added on the income and thus the ground may please be allowed." 3. Heard rival contentions, perused the....