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2022 (1) TMI 834 - AT - Income TaxAdjustment made in the intimation u/s. 143(1) - denying the benefit of deduction/exemption u/s 11 - CIT(A) upheld the adjustments made in the intimation stating that the assessee had not furnished the details of its registration u/s. 12A/12AA in the return of income and had in fact mentioned that it had not been registered under the said section and had in fact stated "no" against column in the return of income asking whether registered u/s. 12A/12AA of the Act - HELD THAT:- We find that the necessary details of registration u/s. 12A had been filed before the ld. CIT(A) and the assessee had also pointed out that in any case even if it is treated as not registered and assessed in status of AOP since its taxable income was below the limit prescribed for AOPs no tax liability arose in the case of the assessee. We have gone through the provisions of section 143(1) and we find that the said section provides, by way of proviso, that no adjustments to the income shall be made till the same is intimated to the assessee and 30 days time is given to the assessee to respond to the same. In the present case, the facts on record do not reveal any such opportunity being granted to respond. Therefore, when the assessee had responded before the ld. CIT(A), i.e., the first available opportunity, pointing out with evidence that it was a registered charitable entity and thus entitled to the deductions/exemptions claimed he was duty-bound to consider the same and accordingly adjudicate the issue. Assessee, we have noted, had also pleaded that even prima facie no tax was due as payable by it even after making the adjustments as its income was below the taxable limit. The Ld. CIT(A), we find, has not taken any cognizance of this contention of the assessee. CIT(A)'s order, justifying the adjustments on the basis of disclosure made by the assessee that it was not registered as a charitable entity, is we find taking a hyper technical view on the issue, particularly when the adjustment was made without affording any opportunity to the assessee as provided in law, coupled with the fact that the assessee had evidenced its registration u/s. 12A of the Act to the Ld. CIT(A) by producing the certificate. Also the Ld. CIT(A) has not addressed the alternative argument of the assessee that even after the adjustments its income was below the taxable limit. We consider it fit to restore the issue to the ld. CIT(A) with the direction to decide the appeal - Appeal of the assessee is allowed for statistical purposes.
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