TMI Blog2022 (6) TMI 1097X X X X Extracts X X X X X X X X Extracts X X X X ..... sallowances. Assessee appeal allowed. - ITA No. 29/Ahd/2021 - - - Dated:- 15-6-2022 - Shri Waseem Ahmed , Accountant Member And And Shri Siddhartha Nautiyal , Judicial Member Assessee by : Ms. Arti N. Shah , A. R. Revenue by : Shri Atul Pandey , SR - D. R. ORDER PER : SIDDHARTHA NAUTIYAL , JUDICIAL MEMBER : - This is an appeal filed by the assessee against the order of the ld. Commissioner of Income Tax (Appeals)-9, Ahmedabad in Appeal no. CIT(A)-9/10036/DCIT CPC)/2019-20 vide order dated 13/08/2020 passed for the assessment year 2017-18. 2. The assessee has raised the following grounds of appeal:- 1. The Learned Commissioner of Income Tax (Appeals) has erred in law as well as on the facts of the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) to allow deduction of Rs. 3,93,662/- fully as claimed in the return of income, for amount set part u/s. 111(1)(a) of the I.T. Act, 1961 (ii) to allow deduction of claimed u/s. 11 of the I.T. Act, 1961 (iii) to hold that income of Rs. 8,44,501/- shown u/s. 11(3)(c) is not assessable separately and distinctly from other income. 6. Your Appellant prays to reserve the right to add, alter, amend and /or withdraw any of the above grounds of appeal. Total Tax Effect: 99,717/- 3. At the outset, we note that the appeal is time-barred by 161 days. The counsel for the assessee submitted that the appeal was filed during the corona outbreak and hence is covered by the decision of the Hon'ble Supreme Court in S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n under section 143(1) of the Act cannot be considered as adjustments stipulated under section 143(1)(a) of the Act, and hence the same cannot be disallowed by way of adjustment u/s 143(1)(a) of the Act. The assessee filed appeal before Ld. CIT(A) dismissed the assessee s appeal by holding that since the position of law is unambiguous and not debatable, the action of AO, CPC is upheld and the additions made by way of intimation under section 143(1) of the Act are sustained. 5. Before us, the Ld. Counsel for the assessee at the outset submitted that the case is directly covered by the order passed by Ahmedabad ITAT in assessee s own case for the immediately preceding assessment year AY 2016-17, a copy of which has been placed before us. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appeal of the assessee was disposed of in favour of the assessee vide order dated 21.8.019 just two months after the passing of the impugned order by the ld. CIT(A). The relevant portion of Coordinate Bench's order reads as under: 5. Before us, the assessee raised two fold submissions. Firstly, on the strength of Hon'ble Kolkatta High Court in the case of CIT Vs. Natwarlal Chowdhury Chanty Trust, 52 taxmann 330 (Kol) it is entitled for deduction at 15% of the alleged deemed income offered for taxation in this assessment year. In the second contentions, she contended that both the issues are debatable that cannot be adjudicated under section 143(1) of the Act. 6. On the other hand, the ld. DR relied upon the order of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal in agreeing with the decision of the Appellate Assistant Commissioner observed: The legal fiction contained in section 11(3) of the Income-tax Act, 1961, should be allowed to play to the fullest extent and there is no warrant to take a restricted view for denying the exemption which is specifically allowed by the statute. In fact, as per the law as stood from April 1, 1976, charitable trusts are permitted to accumulate up to 25% of their income without complying with any formalities or condition and such accumulation is not included in the total income. Therefore, we uphold the order of the Appellate Assistant Commissioner as it is quite justified in law and the assesses would be entitled to accumulate 25% of the total inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as possible. Adjustment under section 143(l)(a) is not permissible on both these aspects. Therefore, we allow appeal of the assessee, and delete both the disallowances. 6. In the light of the above, respectfully following the Co-ordinate Bench decision in the assessee's own case for the Asst. Year 2015-16, wherein the disallowances were being made under section 143(1) of the Act, and similar disallowance is also made for the present year viz. Asst. Year 2016-17, we hold that debatable issue should not be done in an intimation under section 143(l)(a) of the Act. Therefore, we allow the appeal of the assessee and delete both the disallowances. 7. In the result, the appeal filed by the assessee is allowed. 5. In the resu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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