TaxTMI 
TaxTMI 
2026 (9) TMI 970
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....peal are as under: ITA No. 8256/MUM/2025 1. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in holding that the receipts of assessee from National Stock Exchange and its members are exempt for tax by virtue of notification u/s. 10(23EA) of the Act ignoring the provisions of section 11(7) of the Act [as applicable prior to its amendment by the Finance (No. 2) Act, 2024 w.e.f. 01.04.2025] wherein it was stipulated that once a trust OR institution is granted registration under section 12A/12AA/12AB and such registration is in force, no exemption under section 10 [other than those specified in clauses (1), (23C), (23EC), (46), and (46A)] can be availed, thereby, the benefit of exemption u/s. 10(23EA) shall not be available to a trust simultaneously registered u/s. 12A which is the case of the assessee. 2. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in holding that the contribution received to the tune of Rs. 26,37,73,403/- is exempt under section 10(23EA) of the Income-tax Act, 1961 by virtue of CBDT Notification No 253/2005 F. NO 178/71/2000-ITA-I dated 29.11.2005 notifying the assessee trust for the purp....
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.... (iv) disallowance of expenditure [or increase in income) indicated in the audit report but not taken into account in computing the total income in the return; (v) disallowance of deduction claimed under [section 10AA or under any of the provisions of Chapter VI-A under the heading "C.-Deductions in respect of certain incomes", if] the return is furnished beyond the due date specified under sub-section (1) of section 139; or (vi) addition of income appearing in Form 26AS or Form 16A or Form 16 which has not been included in computing the total income in the return: Provided that no such adjustments shall be made unless an intimation is given to the assessee of such adjustments either in writing 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: Provided also that no adjustment shall be made under sub-clause (vi) in relation to a return furnished for the assessment year commencing on or after the 1st day of April, 2018;"....
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....ss an intimation is given to the assessee of such adjustment either in writing or in electronic mode. Apparently in the case of the assessee, no intimation had been given to the assessee for making any adjustment or disallowance either in writing or in electronic mode. Thus, the CPC center has not followed the first proviso to section 143(1)(a) of the Act. This position was not controverted by the ld. DR also. Assuming a moment, if such an intimation is given to the assessee as per first proviso, then the second proviso stipulates that if any response is received from the assessee, the same should be considered before making any adjustment or disallowance, and also in a case where no response is received, then within thirty days of the issue of such intimation, department is free to make such adjustment. 8. On going through the above intimation made under section 143(1), CPC has not followed the above provisos by giving proper opportunity to the assessee to defend its case as per the first proviso to section 143(1)(a) . Further, the NFAC order is also silent about the intimation to the assessee. Therefore, we find that intimation issued under section 143(1) dated 19-10-201....
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.... in force, no exemption under section 10 [other than those specified in clauses (1), (23C), (23EC), (46), and (46A) ] can be availed, thereby, the benefit of exemption u/s. 10(23EA) shall not be available to a trust simultaneously registered u/s. 12A which is the case of the assessee. 2. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in holding that the contribution received to the tune of Rs. 1731,48,49,214/- is exempt under section 10(23EA) of 253/2005 the Income-tax F. Act, 1961 by virtue of CBDT Notification No NO 178/71/2000-ITA-I dated 29.11.2005 notifying that the assessee trust for the purpose of section 10(23EA) ignoring the assessee has not established that the impugned receipts relate to such notified category and the assessees fund were actually governed and operated in accordance with the conditions prescribed therein. 3. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in holding that the adjustment made by the CРС u/s. 143(1)(a) denying exemption u/s. 10(23EA) was beyond the scope of section 143(1), despite the fact that the incorrect claim was apparent from the return of income its....
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....matter of any adjustments u/s. 143(1) of the Act. Attention has been drawn to the detailed written submission made in this regard before the ld.CIT(A) dated 25.09.2024 where it was inter alia claimed that it response to the show cause by the CPC was not considered at all. 10.1 Without prejudice, it is submitted that the CPC is not permitted to make such adjustments on debatable issues. Reliance has been placed on the decisions in the cases of Vodafone Idea Ltd in Civil Appeal No. 2377 of 2020(SC), Kamla Textiles 189 ITR 339(MP), C.S.Kothari 286 ITR 397(Mad) etc. 11. The ld.DR on the other hand relied upon the orders of the authorities below. 12. We have considered the rival submissions and perused the records. The provisions of section 143(1) of the Act as reproduced in para 5 above provide for prima facie adjustment only in certain case i.e. any arithmetical error in the return; an incorrect claim, if such incorrect claim is apparent from any information in the return; disallowance of loss claimed, if return of the previous year for which set off of loss is claimed was furnished beyond the due date specified under sub-section (1) of section 139; disallowance of expenditur....