TaxTMI 
TaxTMI 
2022 (10) TMI 1308
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....me Tax Act, 1961 (Act) as a charitable institution existing for the purpose of providing education. It runs an Engineering College in Palakkad District of Kerala. In the return of income filed for AY 2017-18 on 7.11.2017, which is admittedly within the due date prescribed u/s.139(1) of the Act, the Assessee claimed exemption u/s.11 of the Act on income applied for charitable purpose to the extent of Rs.7,19,24,640/-. The said return of income was electronically processed by the Centralized Processing Centre, Bangalore(CPC). The CPC after electronically processing the said return of income issued an intimation u/s.143(1)(a) of the Act, dated 9.3.2019, in which the claiming for exemption u/s.11 of the Act to the extent of Rs.7,19,24,640/- was....
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....ting or in electronic mode: Provided further that the response received from the assessee, if any, shall be considered before making any adjustment, and in a case where no response is received within thirty days of the issue of such intimation, such adjustments shall be made; (b) the tax and interest, if any, shall be computed on the basis of the total income computed under clause (a); (c) the sum payable by, or the amount of refund due to, the assessee shall be determined after adjustment of the tax and interest, if any, computed under clause (b) by any tax deducted at source, any tax collected at source, any advance tax paid, any relief allowable under an agreement under section 90 or section 90A, or any relief ....
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....t or percentage or ratio or fraction; (b) the acknowledgement of the return shall be deemed to be the intimation in a case where no sum is payable by, or refundable to, the assessee under clause (c), and where no adjustment has been made under clause (a). 3. Before CIT(A), the Assessee submitted that the denial of exemption u/s.11 of the Act was for the only reason that the Assessee did not uphold Form No.10B. It was highlighted before CIT(A) that audit report in Form No.10B was filed on 29.6.2020 and also explained why there was a delay in filing audit report in form No.10B. Section 12A states various conditions for availing the exemption under the Act - the first condition is regarding application for registration under sectio....
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.... Motilal Malwasie Trust (1992) 195 ITR 825, the Calcutta High Court has affirmed that that the requirement of filing the audit report with the return is merely a procedural requirement, and that exemption cannot be denied so long as the report is available to the assessing officer before the completion of assessment. In the case of Calcutta Management Association vs. ITO (1992) 42 ITD 62, the Calcutta bench of the Tribunal held that the Audit Report can even be filed at the time of appeal before the Commissioner (Appeals). The High Court of Punjab and Haryana in the case of Commissioner of Income Tax vs. Sankalp Welfare Society [2008] 303 ITR 64 (Punjab & Haryana) held that Provisions of section 32AB(5) are not mandatory and the Assessing O....
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....l. The submissions made before the tribunal was identical to the submissions made before the revenue authorities. The learned DR placed reliance on the order of the CIT(A). 8. The only clause of sec. 143(1)(a) on the basis of which the disallowance of exemption u/s.11 of the Act was made in the intimation dated 9.3.2019 is clause (ii) of Sec.143(1)(a) which refers to an incorrect claim, if such incorrect claim is evident from any information in the return. Explanation (a) to Sec.143(1)(a) of the Act, lays down what is incorrect claim and it lays down the following as incorrect claim Explanation.-For the purposes of this sub-section,- (a) "an incorrect claim apparent from any information in the return" shall mean a claim....