TMI Blog2022 (9) TMI 864X X X X Extracts X X X X X X X X Extracts X X X X ..... ve that in the eventuality the assessee deems it fit to challenge the order passed by the AO u/s. 154, it is hoped that the First Appellate Authority considers the delay in the filing of the appeal fairly as admittedly in the facts of the present case, the assessee cannot be said to have acted carelessly or be accused of sleeping over his rights. The assessee as per record has suffered on account of the ignorance in understanding the nuances of law. Accordingly, on account of lack of proper advice available to the assessee, opportunity to claim redressal under law should not be crushed. It is seen that no undue advantage is gained by the assessee by approaching the First Appellate Authority by filing appeal against the order u/s.143(1) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10(23C)(iiiab) read with section 11 of the Act. 2. That the appeal against the order passed by AO CPC, Bangalore under section 143(1)(a) has been preferred before CIT (Appeals) Patiala/NFAC instead of preferring an appeal against order u/s. 154 of the Act passed by A.O. CPC under bonafide belief that in both the orders passed by the A.O. CPC, the issue is the same and contested for the deletion of sustained interest amounting to Rs. 1667017 before CIT (Appeals) Patiala/NFAC as the interest accrued against the FDRs which has been added twice that is at Rupees 3336034 u/s. 143(1)(a) wrongly by AO CPC while only interest income of Rupees 1667017 accrued against FDRs in the year under appeal as per Form No. 26AS which is exempt under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te Senior Sec. School Barnala and providing education to girls only and is claiming under section 10(230/11 under the Income Tax Act. 2. That the assessee is a registered institution u/s. Section 12A/12AA of the Income Tax Act and also is an institution substantially financed by government eligible to claim exemption u/s. 10(23C)(iiiab) of the Income Tax Act, 1961. 3. The assessee trusts maintains detailed books of accounts and are audited by Chartered Accountant and copy of Audit Report is duly furnished along with the return. 4. During the year, the assessee had originally filed income tax return showing nil income. Since the assessee institution incurred Net Loss amounting to Rs. 81,60,65.57 after considering total receipt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad) is not an arithmetical error in the return or an incorrect claim apparent from any information in the return Therefore no adjustment could be made by way of intimation u/s. 143(1). 9. That even otherwise exemption u/s. 10(23C) (iiiab) could not denied for the reason that no information is furnished in Schedule VC of the return in respect of receipt of Government contribution as Voluntary contribution is not part of Income as defined u/s. 2(24) (iia) of the Income Tax Act as defined below: (iia) voluntary contributions received by a trust created wholly or partly for charitable or religious purposes or by an institution established wholly or partly for such purposes or by an association or institution referred to in clause ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g under different heads of income including income from other sources, which otherwise do not poses the character of income are also to be included in income. All these amounts will, in the first instance, be included in the income of the charitable trust or institution, and therefore exemption can be claimed. Also it was held in the following cases that the interest income received on account of an investment is incidental to running the college if this income is utilized for the main objects of the education institution and it is entitled for exemption: i) Additional Commissioner of Income Tax Gujrat V/S Surat Art Silk Manufacturers Association (1980) 121 ITR 0001 (SC) ii) City Montessori School (Regd.) V/S UOI others ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... result thereof stood merged with order passed by the AO u/s. 154 dated 25.03.2019. It is a fact that the assessee had not challenged this order. Accordingly, it is seen that in these peculiar facts and circumstances, no mistake can be said to have been committed by the ld. CIT(A) in dismissing the appeal filed. The assessee presumably under ignorance instead of challenging the order passed u/s. 154 dated 25.07.2019 has instead challenged the order u/s. 143(1) of the Act. Accordingly, on facts no fault can be found with the exercise of power by the First Appellate Authority. 7. While so concluding that the appeal of the assessee deserves to fail, it need also be observed that being live to the concerns of the assessee, it is hereby deeme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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