TMI Blog2023 (11) TMI 735X X X X Extracts X X X X X X X X Extracts X X X X ..... ndatory and exemption cannot be denied merely for that reason. HELD THAT:- As intimation u/s. 143(1) deals only with prima facie adjustments in respect of apparent information in the return and when a claim requires further inquiry, it cannot be disallowed without giving opportunity to the assessee. This issue is settled in the case of Veerappampalayam Primary Agricultural Co-op. Credit Society [ 2021 (4) TMI 1169 - MADRAS HIGH COURT] in favor of the revenue, accordingly this ground is dismissed. Assessee submits that the income has to be computed on the total income and not on the entire gross receipts - Tax should be charged on the total income and not on the entire gross receipts. Further, intimation is passed u/s. 143(1) by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udgment cited supra there is no delay in filing of Form 10B by the assessee and it is within the time allowed. The AO is directed to grant exemption claimed by the assessee in accordance with law. Appeal by the assessee is partly allowed for statistical purposes. - SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER For the Appellant : Shri Sundararaman, CA For the Respondent : Shri Ganesh R. Ghale, Standing Counsel ORDER This appeal is filed by the assessee against the DIN Order No.ITBA/NFAC/S/250/2023-24/1052278546(1) dated 23.04.2023 of the CIT(Appeals), National Faceless Appeal Centre, Delhi [NFAC], for the AY 2021-22 on the following grounds:- 1) The order of the CIT(A) is bad erroneous and against the principle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er reasons that may be adduced at the time of hearing, including submission of additional evidences, the appellant prays that this appeal be admitted, considered and justice be rendered. 2. The brief facts of the case is that the assessee is registered u/s. 12A as a public charitable trust and the extended due date for filing return u/s. 139(1) for AY 2021-22 was available till 15.03.2022 and Form 10 was required to be filed 30 days prior, i.e. 28.02.2022. The assessee filed return of income along with audit report in Form 10B on 15.03.2022. The assessee declared income of Rs. 3,36,850, whereas the CPC determined the income at Rs. 15,31,192/- denying exemption u/s. 11 12 of the Act. The assessee s tax liability was of Rs. 4,517 on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard. He therefore upheld the action of the CPC. Aggrieved, the assessee is in appeal before the Tribunal. 4. Ground No. 1 is general in nature. 5. Ground No. 2 raised by the assessee that intimation u/s. 143(1) deals only with prima facie adjustments in respect of apparent information in the return and when a claim requires further inquiry, it cannot be disallowed without giving opportunity to the assessee. This issue is settled by the Hon ble Madras High Court judgment in the case of Veerappampalayam Primary Agricultural Co-op. Credit Society [2022] 121 taxmann.com 571 (Madras) in favor of the revenue, accordingly this ground is dismissed. 6. Vide ground No.3 the assessee submits that the income has to be computed on the total inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e adjustment, therefore, the Assessing Officer while considering the matter, has to keep in mind the provisions of Section 143(1) of the Act which enables him to make prima facie adjustment. 7. However in the case of M/s. Srinivasa Educational Trust (supra), the assessee was not registered u/s. 12A of the Act, but in the present case it is registered u/s. 12A. As held in the above decision, tax should be charged on the total income and not on the entire gross receipts. Further, I also note that the intimation is passed u/s. 143(1) by the CPC. The assessee has filed return declaring income of Rs. 3,36,850 which has not been examined by the lower authorities and therefore for computation of income as per the Act, the matter should go back ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity as per CBDT Circular, therefore the claim of the assessee should not be accepted. 10. Considering the rival submissions, I note that the assessee is registered u/s. 12A of the Act and filed return of income u/s. 139(1) along with audit report in Form 10B on 15.03.2022. The CPC denied exemption u/s. 11 12 of the Act for belated filing of Form 10B and computed income on the gross receipts. There is precondition for getting exemption u/s 11 that the assessee should get the audit report in Form 10B and it should be furnished within one month before the due date for filing of return u/s. 139(1) of the Act. The assessee has submitted the reasons for non-filing of audit report within the stipulated date due to technical glitches in filing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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