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TMI Blog2023 (11) TMI 735X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) erred in not considering the contention of the appellant in proper perspective that when a debatable issue arises, it cannot be adjusted merely by way of intimation under Section 143(1)(a) of the Act, since sec.143(1) deals only with prima facie adjustments in respect of any apparent information in the return. In other words, the CIT(A) erred in not considering the fact that when a claim made by the appellant requires further inquiry, it cannot be disallowed without hearing the parties and / or giving the party an opportunity to support its claim which is possible u/s. 143(3) and not u/s. 143(1). 3) The CIT(A) erred in not appreciating the fact that what can be taxed for a Trust is only the income computed on commercial principles a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ror message in the 143(1) proposal stating that the trust has not e-filed the audit report in Form 10B one month prior to the due date for filing return u/s. 139(1), hence exemption claimed u/s. 11(1)(d) and Sr. No. 4i to 4viii of Part B- TI is not allowable. The assessee raised objections before the CPC that audit report could not be filed within the stipulated date due to several glitches in the New E filing portal and also the CA faced technical glitches in filing the same. The filing of audit report is directory and not mandatory and exemption cannot be denied merely for that reason. It was submitted that the above grievance of the assessee was not adjudicated on merits stating that the reply was received after the stipulated date, wher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has considered the entire gross receipts as income which is not correct. He submitted that the total income computed by the assessee is Rs. 3,36,850 on which assessee has paid taxes. I note that ITAT Chennai in ITA No.1327 & 1328/Chny/19 dated 5.9.2019 in the case of M/s. Srinivasa Educational Trust on this issue has held as follows:- "4. We heard Shri Sridhar Dora, the Ld. Departmental Representative also. We find some substance in the submission of the Ld.counsel for the assessee. Admittedly, registration under Section 12AA of the Act was not available to the assessee during the year under consideration. Therefore, income of the assessee has to be computed commercially by allowing all the expenditure for earning the income. In oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e above terms. Accordingly, this issue is remitted to the AO for the purpose of verification and computation of total income as per law after giving reasonable opportunity of being heard to the assessee. The assessee is directed to file necessary documents and not to seek unnecessary adjournment. 8. Regarding ground No.4, the ld. AR reiterated the submissions made before the CIT(Appeals) and submitted that audit report could not be filed in time due to technical glitch in the e-portal of the department. In this regard, the assessee filed its grievance before the CPC which was not considered. He submitted that filing of audit report is directory and not mandatory. He reiterated the case laws relied on before the CIT(A). He also relied on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d this grievance was submitted to the CPC. The ld. AR placed reliance on the judgment of the Hon'ble Supreme Court where it is held that period from 15.3.2020 to 28.2.2022 shall stand excluded and in cases where limitation would have expired during the above period, time limit of 90 days or actual balance time (whichever is higher) shall be available from 01.03.2022 for filing appeals etc. Further, it is noted that Form 10B which was filed along with return on 15.03.2022 due to technical glitches in filing the Form 10B in the e-portal of the department as explained above by the assessee. In view of Hon'ble Supreme Court judgment cited supra there is no delay in filing of Form 10B by the assessee and it is within the time allowed. The AO is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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