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2016 (5) TMI 201 - ITAT BANGALORE

2016 (5) TMI 201 - ITAT BANGALORE - TMI - Eligibility to exemption exemption u/s.80P and 10(23C) - Held that:- Despite the expiry of more than 18 months, AO did not respond to the remand order of the CIT (A) and therefore the CIT (A) was left with no option but to decide the appeal of the assessee without having the benefit of the remand report of the AO. We find that there is no justification or explanation by the Department as to why the AO has not submitted the remand report or other report o .....

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has already issued a remand order giving full opportunity to the AO for examination of the claim, then in the absence of any claim of the Revenue that assessee is not entitled for the exemption u/s.80P and 10(23C) of he Act, we do not find any error or reason to interfere with the impugned order of the CIT (A). - Decided against revenue - I.T.A No. 922/Bang/2014 - Dated:- 29-4-2016 - Shri Vijay Pal Rao, Judicial Member And Shri Inturi Rama Rao, Accountant Member For the Petitioner : Shri. Sande .....

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umn 43 of P&L A/c in its Return of Income and declared "NIL" taxable income in Schedule BP without setting off the above income or claiming any exemption or deduction whatsoever. 3. On the facts and in the circumstances of the case the learned CIT(A) erred in law in holding that all of the additions/ disallowances made by the AO are exempt by placing reliance on her earlier order for AY 2005-06, without appreciating the fact that the assessee has not claimed any exemption u/s 10 or .....

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come-tax Act, 1961 ('the Act' in short), vide intimation dt.10.05.2011. In the said intimation the AO at CPC processed the return and added a sum of ₹ 2,95,98,463/- under the head ' income from business or profession' and raised a demand of ₹ 2,35,69,278/-. 4. Aggrieved by the said addition and consequential demand, assessee filed an appeal before the CIT (A) and contended that the assessee has shown nil income in the return of income. It was pointed out that in the r .....

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CIT (A) accordingly issued a remand order to the AO for verification. But despite several reminders over a period of 18 months, AO did not submit its report. CIT (A) has decided the appeal of the assessee by allowing the claim and deleting the addition. 5. We have heard the Ld. DR as well as the Ld. AR and considered the relevant material on record. Ld. DR has submitted that the CIT (A) has allowed the claim of exemption u/s.10 which was not claimed by the assessee in the return of income and fu .....

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bmitted that mainly because there is an error in the return of income in mentioning the business income and then claiming exemption of the same, cannot be a reason for making such addition by the AO when the income was otherwise not taxable in the hands of the assessee. In support of his contention he has relied upon the decision of Mumbai bench of this Tribunal in the case of Shrikant Real Estates P. Ltd v. ITO [22 ITR (Trib) 266]. Ld. AR pointed out that this is a bonafide mistake in the eretu .....

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aim of exemption was made, however, when the assessee has not admitted any income in the return of income, then while making the addition / adjustment u/s.143(1) of the Act, the AO cannot consider only one aspect of the matter being the income which was not disclosed by the assessee in a particular column. But the eligibility of the said income for exemption u/s.80P of the Act and further exemption u/s.10 of the Act, as the government grant are exempted u/s.10(23C)(iiib) of the Act, was also req .....

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have been claimed in item No.A-5(d) of Schedule BP. The matter was also remanded to the AO for verification but, despite several reminders over a span of 18 months, no reply has been received from the AO. Therefore, on the basis of the materials available on record, appellant's arguments and records and certain files, the case has been decided. 3.2 The AO [in this case the ACIT (CPC)] was, therefore, not justified in making the additions or disallowances. However, no attempt is made here to .....

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d to the remand order of the CIT (A) and therefore the CIT (A) was left with no option but to decide the appeal of the assessee without having the benefit of the remand report of the AO. We find that there is no justification or explanation by the Department as to why the AO has not submitted the remand report or other report of not submitting the remand report. Therefore it is clear that the AO was not having any explanation or reason for not filing the remand report. Even otherwise, it is not .....

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ubmissions and perused the orders of the lower authorities and the copy of the revised e-return filed by the assessee. In the present system of e-filing of return which is totally dependent upon the usage of software, it is possible that some clerical errors may occur at the time of entering the data in the electronic form. The return is prepared electronically which is converted into an XML file either through the free downloadable software provided by the CBDT or by the software available in t .....

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