TaxTMI 
TaxTMI 
2026 (9) TMI 1370
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....t to file the said return of income u/s. 139(4) of the Act with respect of the AY. 2016-17 was 31-03-2018. The Ld. Assessing Officer/CPC ("AO/CPC"), vide intimation u/s. 143(1) of the Act, dt. 30-05-2018, determined the income of the assessee at Rs. 1,43,91,810/- as against the returned income of Rs. NIL. While assessing the income of the assessee, the Ld.AO taxed the total amount of donations of Rs. 1,43,91,813/- credited to the Income and Expenditure Account. 3. Aggrieved by the said intimation order u/s. 143(1) of the Act, dt. 30-05-2018, the assessee filed an appeal before the Ld.ADDL/JCIT(A), who dismissed the appeal of the assessee by observing as under "7.2 Grounds No.1 to 3: The appellant has challenged the Intimation Order u/s 143(1) of the Act dated 30.05.2018 for A.Y. 2016-17 wherein the CPC has denied exemption u/s 11 by taxing voluntary contributions of Rs. 1,43,91,813/- at Rs. 1,43,91,810/- on the ground that audit report in Form 10B u/s 12A(b) of the Act and Form 10 for accumulation u/s 11(2) of the Act were not filed along with the return filed on 24.11.2017 (within extended due date u/s 139(4) of the Act). The appellant contends that Form 10B was signed....
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....on strict adherence to procedural requirements. Since the appellant failed to comply with the mandatory timeline of filing the Form 10B, the denial of exemption u/s 143(1) of the Act is in accordance with law and consistent with the principal ratio decidendi by the Hon'ble Supreme Court, in the case of Principal Commissioner of Income Tax-III v. Wipro Limited. Hence, the grounds of the appeal no. 1 to 3 of the appellants are dismissed as per above discussion. 7.6 In relation to the additional ground that if section 11 of the Act is denied the appellant should be allowed the benefit of deduction u/s 57 of the Act while determining the taxable income, it is submitted that deductions u/s 57 of the Act are admissible when computing taxable income chargeable under the head "Income from Other Sources." These deductions apply to specific expenses directly linked to earning such income, ensuring only net income is taxed and are allowed only for expenses incurred wholly and exclusively for earning the income, excluding capital or personal expenditures. They must relate to the relevant accounting year and cannot be claimed against exempt income. Charitable trusts whose income, o....
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....me Tax Law that only real income and not gross receipts can be brought to tax, even under the head 'Income from Other Sources'. Therefore, the impugned order is bad in law and should be set aside. 4. On the facts & circumstances of the case and in law, without prejudice to above grounds of appeal, the learned CIT(A) has erred in not allowing the expenditure incurred by the Appellant trust under section 57 of the Act of INR 1,07,54,286/- and taxed the entire receipt of appellant trust as income from other sources, the CIT(A) may be directed to allow the deduction of INR 1,07,54,286/- under section 57 of the Act while computing the total income. 5. The Appellant craves leaves to add/modify/amend/delete all/ any of the grounds of appeal and to lead and submit evidence/ additional evidences during the course of Appellate proceedings." 5. The Ld.AR submitted that the assessee has been denied its claim of exemption u/s. 11 of the Act on the ground that the assessee filed audit report belatedly. The Ld.AR submitted that the audit report in Form-10B was filed electronically on 04-09-2018 (page 13 to 15 of the paper book refers). He submitted that since the asse....
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....before the intimation order was passed by the CPC, therefore, the claim of exemption u/s. 11 of the Act should not be denied. There is also no dispute to the fact that the assessee filed the audit report in Form-10B on 04-09-2018 and Ld.ADDL/JCIT(A) has passed the impugned order on 31-12-2025. Admittedly, Form-10B was filed after intimation order u/s. 143(1) of the Act was passed, but before the appellate proceedings were completed. 7.1. We find that an identical issue had come up before the Co-ordinate Bench of the Pune Tribunal in the case of Indian Medical Association, Pune Branch vs. DCIT(E) (supra), where the Tribunal relied on the decision of the Hon'ble Gujarat High Court in the case of CIT vs. Laxmanarayan Dev Shrishan Seva Khendra (supra) and allowed the assessee's claim of exemption u/s. 11 of the Act. In the case of CIT vs. Laxmanarayan Dev Shrishan Seva Khendra (supra), the Hon'ble High Court has held that - "where assessee, a public charitable trust, did not upload audit report in Form 10B along with its return of income and CPC processed return under section 143(1) denying benefit of section 11, since assessee had already filed audit report in Form 10B electron....