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2022 (3) TMI 143 - AT - Income TaxRectification of mistake u/s 154 - CIT(A) not allowing of deduction u/s 11 of the Act which are claimed to have been incurred for charitable purpose - HELD THAT:- We find that the assessee is a charitable Trust registered u/s 12AA of the Act since 06.07.1979 and the same is in force. There is no iota of evidence on record to dispute the fact that the assessee Trust is regularly carrying out charitable activities as per its objects for which it has been granted registration u/s 12AA of the Act. Against the gross income earned during the year at ₹ 11,60,122/-, the said Trust incurred an expenditure of ₹ 6,02,569/- for charitable purpose, it also set apart an amount of ₹ 1,71,463/- u/s 11(1)(a) of the Act for application to charitable or religious purposes in subsequent year and for doing the same, Form No. 10B has been filed. The deduction has also been claimed for ₹ 3,86,090/- u/s 11(1)(2) of the Act, for which Form No. 9A has been filed. The reason for denial of this deduction by the Revenue authorities was only on account of a mistake made by the assessee in filing the income tax return in ITR Form No. 7 by not filling the deduction amount in the prescribed column which resulted in denying the deduction by the Central Processing Centre (CPC). The said mistake has already been rectified by the assessee by filing the rectification on the income tax portal and submitting the corrected XML file on the income tax portal. The hard copy of the revised return/rectified return is placed on record in paper book at page 35-65 and after perusal of the same we find that the assessee has shown the respective amount of deduction claimed in the correct prescribed column. But even after filling the correct details, Central Processing Centre (CPC) has again rejected the claim without assigning any reason. In our view, the ld. CIT(A) erred in not deciding the issue on merit and exceeded its jurisdiction by directing the AO to examine the issue afresh. Thus we are of the considered view that the assessee being a charitable Trust registered u/s 12AA of the Act deserves to be allowed the deduction claimed u/s 11 - Decided in favour of assessee.
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