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2022 (9) TMI 1393 - AT - Income TaxAdjustment done by CPC under the provisions of section 143(1) - Disallowing the claim of assessee as claimed in the return of income while processing return of income u/s 143(1) - Debatable issue - entire income as exempt u/s 10(23C)(iiiad) of the Act was disallowed - HELD THAT:- The cumulative effect of section 143(1) and omission w.e.f. 1.6.1999 of section 143(1A), 143(1B) & 143(5) of the Act is that neither prima facie adjustments can be made nor any levy of additional income tax can be made on or after 1st, June, 1999. Thus, the power of AO under this section are very limited and restricted only to the returned income filed by the assessee. A.O. cannot visit beyond the return except to compute tax or interest after adjustment of pre-paid tax as mentioned above. Therefore, according to the clear provisions of section 143(1) of the Act, it would be beyond the jurisdiction of AO to compute income by denying exemption u/s 10(23C)(iiiad) of the Act on the reason that aggregate annual receipts shown in Schedule Part-A General (1) details of the projects/institutions run by the assessee is more than Rs.1 crore. In our opinion, the issue of determining the exemption u/s 10(23C)(iiiad) of the Act or 10(23C)(iiiae) is very debatable. As relying on Children Education Society [2013 (7) TMI 519 - KARNATAKA HIGH COURT] the issue which is very much debatable that which cannot be done while processing the return u/s 143(1) of the Act. Further, the Ld. CIT(A) not addressed the issue properly. Hence, the lower authorities committed error in disallowing the claim of assessee as claimed in the return of income while processing return of income u/s 143(1) of the Act. Accordingly, we allow all the grounds taken by the assessee in this appeal from ground Nos.2 to 5.
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