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TMI Blog2024 (5) TMI 1295X X X X Extracts X X X X X X X X Extracts X X X X ..... d by CPC, Bangalore on 01.03.2019. 2. Following are the grounds of appeal before us: "1. The Ld. CIT(A) has erred in upholding the disallowance made in the intimation order passed u/s 143(1) of the IT Act which was passed without giving any opportunity of being heard to your appellant. In the said intimation order, the claim of exemption u/s 11 of the IT Act is denied and a demand is raised. Such arbitrary disallowance of exemption is prayed to be deleted. 2. The Ld. CIT(A) has upheld the disallowance of exemption u/s 11 of the IT Act in the intimation order passed u/s 143(1) of the IT Act making an addition of Rs. 40,67,000/- on account of income chargeable u/s 12(2) of the IT Act, merely because of a delay in filing the return of inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see is running a school and engaged in educational activities. The assessee filed its return of income for the A.Y. 2016-17 on 31.03.2018 declaring Nil income. The assessee also attached audited financial statements along the return of income and filed form 10B which is an audit report under section 12A(b) of the Act. 4. The assessee claimed an application of Rs. 41,27,181/- as amount applied to charitable or religious purposes in India in its return of income. While filing the return of income the assessee by mistake entered an amount of Rs. 40,66,996/- into column 10iv of the ITR-7 as Income chargeable under section 12(2) of the Act. 5. The CPC processed the return of income and passed the order u/s 143(1) of the Act on 01.03.2019 addin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) has wrongfully concluded that the assessee has admitted the income u/s 12(2) but the same is a clerical mistake at the time of filing return of income and the same can could have been verified from form 10B. iv. The CIT(A) has treated the return as non-est as the same was filed beyond the due date of filing return u/s 139(1). Whereas it is important to note that the CPC has processed the same return (treated as non-est by CIT(A)) and raised the demand. v. The delay in filing form 10B is procedural and if filed late the exemption u/s 11 can't be denied. CIT(A) in his order stated that the assessee is not eligible to claim exemption u/s 11 and 12. He placed reliance on the decision of co-ordinate bench in case of Gyandeep Charitable Tru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ating to income chargeable under section 12(2) of the Act. As admitted by the assessee, it is mistake in filing the return of income. 14. After perusal of Form No.10B as placed on record, it could be seen that the assessee has applied an amount of Rs. 40,66,996/- for the purpose of charitable objectives of the trust. Merely because there is mistake in filing the corresponding columns in the return of income, the same would not result into enhancement of the assessee's income. 15. Since the return of income filed by the assessee is valid and also processed by CPC Bengaluru u/s 143(1) of the Act, action of CIT(A) in treating the return of income non-est is unjust. 16. Now we deal with the question of allowability of exemption u/s 11 due to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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