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TMI Blog2022 (10) TMI 448X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Act, 1961 (hereinafter referred to as 'the Act'), issued by CPC, Bengaluru, vide communication reference no. CPC/1718/A7/1875540238, order dt. 27/03/2019, for Assessment Year 2017-18. 2. The issue raised by the assessee vide this appeal relates to disallowance of claim made by the assessee u/s. 11 of the Act. Before us, Shri Siddhartha Jhajharia, FCA along with Sujoy Sen, represented the assessee and Shri Biswanath Das, Addl. CIT, represented the department. Ld. Counsel submitted a paper book containing 24 pages, which is placed on record. Ld. Counsel also referred to the additional grounds raised before this Tribunal filed on 26/04/2022 in respect of processing of return u/s. 143(1) wherein no disallowance or addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... way of adjustment made u/s. 143(1) of the Act. 4. Aggrieved, the assessee is in appeal before the Tribunal. 5. Before us, ld. Counsel submitted that, any adjustment made u/s. 143(1) by CPC, Bengaluru, are very restrictive in nature as provided in the Section itself. Further, the proviso to Section 143(1) also states that no adjustment shall be made unless an intimation is given to the assessee of any such adjustment either in writing or in electronic mode. Ld. Counsel submitted that, Form 10B was placed on record and was available with the department, which was filed on 22/05/2018, much prior to the issuance of the impugned intimation u/s. 143(1) which is dt. 27/03/2019. Thus, the relevant Form 10B, wherein the application of income for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to have given the assessee an opportunity to submit the audit report as the return was defective inasmuch as the audit report was not filed along with the return. In this case, as we have already noticed, the said defect was rectified by the assessee by filing an audit report in the prescribed form before the completion of the assessment. The income-tax authorities took a hypertechnical view of this matter. Where the assessee has complied with the provisions of the Act in the course of the assessment proceedings by curing the defect in the return by filing an audit report, the ITO cannot ignore such audit report or the return in completing the assessment. 19. We may also take note of the fact which has been recorded by the Tribunal that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on u/s. 143(1) of the Act which was issued on 27/03/2019. From the perusal of Form No. 10B, we note that assessee has claimed an amount of Rs. 33,72,827/- towards application of income for charitable purposes in India during the year under consideration. It has also claimed accumulation or set apart of an amount of Rs. 5,08,501/- for application to charitable purposes to the extent it does not exceed 15% of the income of the assessee. Audited financial statements of the assessee are also placed on record in the paper book. We note that, provisions of Section 143(1) deals with processing of return and refers to certain specific adjustments which can be made while processing the return provided that an intimation has been given to the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amine the admissibility of the benefit than to foreclose the assessee on technicalities. This view has been affirmed by the Hon'ble High Court of Madras in the case of Chandra Prabhuji Maharaj Jain vs. DCIT (Exemptions) reported in [2019] 110 taxmann.com 11 (Mad.). 8. In the interest of justice, we accordingly consider it fair and proper to set aside the order/intimation of the authorities below by taking force from the judicial precedents referred above and in the light of the fact that the assessment was not done u/s. 143(3) of the Act, and restore the matter to the file of the ld. Assessing Officer for making a fresh assessment after taking into account the audit report in Form 10B placed on record as well as the claim of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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