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2023 (8) TMI 1336 - ITAT KOLKATAValidity of order passed un/s 143(1) - Whether CPC erred in not following the mandate as required by first proviso to section 143(1) which says that no such adjustment shall be made unless an intimation is given to the assessee of such adjustment either in writing or in electronic mode? - HELD THAT:- As the adjustment has been made by the ld. Assessing Officer, CPC to the income of the assessee without even giving any intimation in terms of proviso to section 143(1)(a) of the Act and, therefore, the said order is quashed as invalid and nullity in the eyes of law. In the result, the additional ground is allowed. Exemption u/s 11 comprising capital expenditure and revenue expenditure - claim denied as income tax return and Form 10B were filed late - HELD THAT:- Admittedly the return of income was filed in Form 7 and Form 10B on 31.03.2021 and 30.03.2021 while the extended due date for filing the return of income in relevant assessment year was 15.02.2021. We note that the COVID 19 pandemic was spread all over the country and the entire country rather the entire globe were completely brought to standstill. And so was the condition so far as the assessee trust is concerned. So considering all these practical difficulties for making compliances, Hon’ble Apex Court has extended the period of limitation with respect to judicial or quasi-judicial proceedings. As relying on Apex Court vide its order IN RE: COGNIZANCE FOR EXTENSION OF LIMITATION [2022 (1) TMI 385 - SC ORDER] there is no delay in filing the return of income as well as Form 10B and, therefore, the order of the CIT(A) upholding the order of ld. Assessing Officer, wherein the exemption claimed u/s 11 by the assessee-Trust has been rejected resulting into disallowance of capital expenditure, revenue expenditure and exemption of 15% of total receipts u/s 11(1)(a) which is incorrect and against the ratio laid down by the Hon’ble Supreme Court. Accordingly direct the AO allow the exemption claimed u/s 11 of the Act. The ground No. 1 to 5 are allowed.
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