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TMI Blog2024 (7) TMI 281X X X X Extracts X X X X X X X X Extracts X X X X ..... Centre(for short "NFAC") has erred in confirming the action of the assessing officer -CPC (for short "AO")- Bangalore, in denying the deduction of Rs. 782092/- u/s 80P of the Income Tax Act. 2. The Lrd. CIT(A) has grievously erred in law in confirming the rejection of application filed by the appellant u/s 154 of the Income Tax Act and confirmed the order of Lrd. Assessing Officer. 3. The Lrd. CIT(A) has grievously erred in law in not considering the claim of deduction u/s 80P as the appellant is governed by the concept of mutuality and entire income is exempt from taxation. The decision of Lrd. CIT(A) rejecting the rectification application u/s 154 of the IT Act confirming the order passed by the Lrd. AO is highly unjustifiable, unwarranted and bad in law. 4. The Lrd. CIT(A) has on facts and law erred in not considering issue which was filed u/s 154 of the Income Tax Act by of rectification and considered that appellant has not filed any appeal against intimation u/s 143(1) of the Income Tax Act and appellant's claim is debatable. The order passed may please deserved to be quashed and set aside. 5. The Lrd. CIT(A) has erred in law in not appreciating application filed by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see should then tick the appropriate box therein, for selecting the rectification reason, and then upload the rectification XML, after making the necessary corrections in the requisite schedules. -It is suggested that Assessee may use Department utility for filing corrected XML" 5. Aggrieved, the assessee filed first appeal with ld. CIT(A), and stated in SOF and/ or written submissions filed before ld. CIT(A) that the assessee is a co-operative society registered under the Co-operative Society Act. The assessee filed return of income on 28-08-2018 declaring nil income. The assessee submitted that the assessee has shown gross income of Rs. 7,82,092/- which consisted mainly of Rs. 5,88,000/- for maintenance income which is exempt on principles of mutuality. All the expenses of Rs. 10,88,753/- are allowable expenses shown in Profit and Loss account and the same were restricted to Rs. 7,82,092, and return of income was filed showing Nil income. The AO passes intimation u/s 143(1) dated 12.07.2019 determining total income at Rs. 7,82,092/- ignoring the claim by the society of the expenditure. The assessee submitted that the assessee filed first rectification application u/s 154 on 22 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of delay supported by affidavit. In the application as well as affidavit, the assessee has claimed that the assessee was never informed about the order passed by ld. CIT(A) by the Authorized Representative who appeared before ld. CIT(A), and the assessee came to know of the order when all the documents were returned by the said AR, and on verification of the papers, the assessee had come to know of about such order passed by ld. CIT(A) dismissing the appeal of the assessee. It is averred that then the assessee approached another Authorized Representative who told the assessee to file appeal with ITAT. The assessee has filed an affidavit that when the assessee came to know that the CIT(A) dismissed the appeal of the assessee, the assessee filed the appeal with the Tribunal. The ld. counsel for the assessee prayed for the condonation of delay, and the ld. Sr DR left the matter to the Bench to decided about the condonation of delay. After hearing both the parties and perusing the material, I have observed that the assessee filed this appeal belatedly before the Tribunal by 104 days beyond the time stipulated u/s. 253(3) of the Act. I have observed that the assessee has filed appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from interest from the bank deposits with saving bank. It is claimed that the assessee is governed by the principles of mutuality. It was submitted that the assessee did not file appeal with ld. CIT(A) against intimation u/s. 143(1), but had filed rectification application u/s. 154, which stood rejected by the CPC and the appeal filed by the assessee before ld. CIT(A) was also dismissed. It was submitted that the there was procedural lapse on the part of the assessee in filing in the column for claiming deduction in the return of income. It was submitted that no revised return was filed by the assessee. It was also submitted that the assessee should not be punished for a procedural lapse on the part of the assessee. While the ld. Departmental Representative submitted that the return of income was not filed properly by the assessee, and the claim of the assessee u/s. 80P was rightly disallowed by the CPC and the assessee has not filed appeal against the intimation u/s. 143(1) but had filed rectification application u/s 154, and the scope of section 154 is very limited to correcting mistakes apparent from record. It was also submitted by ld. Departmental Representative that the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xperts/professionals as in the case of corporate entities, to file its return of income and advise on tax matters. The e-filing of return of income is an evolving concept and is a complex process wherein large number of details are captured by department which also is increasing with the time, and there are regular changes made by the Department in the procedural aspects of filing the return of income including changes made in the ITR's. There is every possibility that some error could be committed by the tax payers keeping in view complexity in filing return of income. There is an error committed by the assessee which is admitted by the assessee. It is also true that the assessee has not filed revised return of income, but at the same time the department authorities are obligtated to assess the correct Income and to collect correct taxes under the mandate of the 1961 Act. Reference is drawn to Article 265 of the Constitution of India. Reference is also drawn to CBDT circular No. 14 of 1955, dated 11.04.1955. The mandate is to assessee correct income and to allow correct deductions, so that correct taxes can be collected. The departmental officers are duty bound to follow the above ..... X X X X Extracts X X X X X X X X Extracts X X X X
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