TaxTMI 
TaxTMI 
2025 (11) TMI 407
X X X X Extracts X X X X
X X X X Extracts X X X X
....urn of income on 08.11.2016 declaring Nil income and the gross receipt was shown of Rs. 26,66,748/-. The due date for filing return of income was 17.10.2016. Return was processed on 27.04.2017 making addition of Rs. 26,66,748/- to the entire receipts shown by the assessee without giving any benefit of expenditure and demand was raised of Rs. 7,64,150/-. Against the above processing of return, assessee filed rectification request on 17.02.2018 which was disposed off on 21.03.2018 and rejected the rectification request. Assessee filed Form 10B on 30.07.2017. However, the documents were added on 20.08.2016. It is mentioned in the income tax return filed by the assessee. Second rectification request was filed on 31.07.2011 which was disposed of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ucational institutions and providing hospitality facilities to needy children. Assessee is complying with the income tax provisions every year regularly. Uploading of Form 10B belatedly was just technical mistake even though the audit was completed and Form 10B was filed within due date and he relied on number of judgments which is placed on record as under : 1 Seva Bharathi Shikshana Samsthe-ITAT, Bangalore order dt. 10-09-2024 in ITA No. 738/Bang/2023 2 Gyandeep Charitable Trust= ITAT, Ahmedabad order dt. 03-01-2024 in ITA No. 555/AHD/2023 3 Hari Gyan Pracharak Trust= ITAT, Ahmedabad order dt. 16-06-2023 in ITA No. 245/Ahd/2021 4 M/s. Arham Mitra Mandal- ITAT, Bangalore order dt.27-06- 2024 in ITA No. 1110/Bang/202....
X X X X Extracts X X X X
X X X X Extracts X X X X
....0B, he could have approached Commissioner under section 119 of the Act for condoning the delay. Even in the case on hand, assessee uploaded Form 10B after second rectification request. 6. Considering the rival submissions, we noted that some and substance of the entire grounds raised by the assessee are related to note granting exemption under sections 11 and 12 of the Act for not filing Form 10B within due date as specified in the Income Tax Act. However, as per section 12A(1)(b) of the Act, assessee was required to file Form 10B within due date. In this case on hand due date for filing return of income under section 139 of the Act was 17.08.2016. However, the return has been filed by the assessee on 08.11.2016 and Form 10B was uploaded....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Hon'ble Apex Court has decided the issue in respect of taxation on real income theory in the case of Southern Technologies Vs. JCIT(2010) 187 Taxman 346 (SC) in which it has been held as under: Theory of "Real Income" 34. An interesting argument was advanced before us to say that a provision for NPA, under commercial accounting, is not an "income" hence the same cannot be added back as is sought to be done by the Department. In this connection, reliance was placed on "Real Income Theory". 35. We find no merit in the above contention. In the case of Poona Electric Supply Co. Ltd. v. CIT [1965] 57 ITR 521, this is what the Supreme Court had to say : ". . . Income-tax is a tax on the 'real income', i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d be add back to that extent in the computation of total income under the Income-tax Act. 38. One of the contentions raised on behalf of NBFC before us was that in this case there is no scope for "add back" of the Provision against NPA to the taxable income of the assessee. We find no merit in this contention. Under the Income-tax Act, the charge is on Profits and Gains, not on gross receipts (which, however, has Profits embedded in it). Therefore, subject to the requirements of the Income-tax Act, profits to be assessed under the Income-tax Act have got to be Real Profits which have to be computed on ordinary principles of commercial accounting. In other words, profits have got to be computed after deducting Losses/Expenses incurr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....it of expenditure and AO is directed to make necessary computation. 9. In the result, appeal filed by the assessee is partly allowed. Pronounced in the open court on the date mentioned on the caption page. ============= Document 1 SEVA BHARATHI TRUST ® Seva Bharathi College Campus, Chamarajanagara - 571313 College Campus, Chamarajanagara - 571313 Income and Expenditure Account for the year ended 31st March 2016 Particulars Note Amount(t) Incomes : Donation Received 26.49,550,00 16,354.59 Interest Received $40.00 Oilwer Taccone 26,66.744.54 Expenses : Bank Charges 396.00 9,206.00 Building Maintainance 31,400.00 22.400.00 Ground Maintainance 25,03.926.05. Depreciation cm Fixed A....