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TMI Blog2017 (4) TMI 609X X X X Extracts X X X X X X X X Extracts X X X X ..... rn of income. There was no entry on which information was required to be furnished under this act which was omitted to be furnished. There was no deduction claimed beyond the statutory limit by the assessee. Therefore hold that the intimation issued by the AO u/s 143(1) of the Act changing the status of the assessee was not in accordance with the provisions of law. The AO is therefore directed to modify the intimation u/s 143(1) of the Act accepting the return of income of the assessee as it is and issue refund as claimed by the assessee. - Decided in favour of assessee. - I.T.A No. 1632/Kol/2016 - - - Dated:- 12-4-2017 - Sri N. V. Vasudevan, JM For the Appellant : Shri G.R.Saha, Advocate For the Respondent : Shri Nicholas Mur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n ITR-7 determined the tax liability of the assessee at a sum of ₹ 2,81,826/- and raised a demand of ₹ 1,09,992/- after giving credit to advance tax paid and TDS of ₹ 1,71,834/-. There is no difference in the total income as declared by the assessee and the total income as determined in the intimation u/s 143(1) of the Act. The increased tax liability is because of the AO s action in concluding that the case of the assessee falls within the status of an AOP to which the provision of section 139(4A) of the Act apply. The provision of section 139(4A) of the Act applies to an income derived by a trust which exists only for charitable or religious purposes whose total income without giving effect to the provision of section 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g were the relevant observations of CIT(A) :- In this case perusal of submission of the appellants shows that the appellant had filled its return in form NO.5. form which is to be used only by a firm, AOP.BOI, artificial judicial persons, co-operative society and legal authority to file their income tax return. As submitted the appellant case is claimed to be religious trust which has been created for the benefit of deity and also in favour of various beneficiary by creating various heads of funds in favour of poor and indigent widow and the other related family members, to the retired farmer servants of the trust and claimed exemption. The nature of activity, objective of the society and documents submitted required to file ret ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P but this could not make them owners. The definition of the word person given in the Act under section 2(31) in enumerative. The last category of the person defined in the Said section is 'every juridical person, not falling within any of the preceding sub-clauses'. Therefore, it is person falls within any of the preceding sub-clauses, then it cannot be termed as Artificial juridical Person. A Hindu may dedicate for religious or charitable objects all property which he can validity dispose of by gift or by will for the purpose of endowment. Even in the case of dedication to an idol, which cannot itself physically hold lands in trustees. The mere execution of a deed, though it may purport on the face of it is dedicate property to an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IS NOT LIABLE TO BE AT THE MAXIMUM MARGINAL RATE AND THE RESTRICTION OF S. 164(3) THIRD PROVISO AS REGARDS THE SHARES IN THE INCOME OF SEVERAL BENEFICIARIES BEING INDETERMINATE; BECAUSE THE SETTLEMENT IS IN FAVOUR OF ONE PERSON ONLY BEING THE DEITY SRI SRI ISWAR RADHARAMAN JEW AND THE DEITY BEING CAPABLE OF HOLDING THE DEDICATED PROPERTIES ABSOLUTELY, IS NOT APPLICABLE. THE CIT(A) ERRED IN HOLDING OTHERWISE AND SO HIS ORDER NEEDS TO BE CANCELLED. 4. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE ORDER OF THE CIT{A) NEEDS TO BE CANCELLED BEING BASED ON IRRELEVANT GROUNDS OR INCORRECT FACTS AND THE APPELLANT SHOULD BE TAXED AT NORMAL RATES AS IN THE FIRST SCHEDULE, PART I TO THE FINANCE ACT OF THE ASST. YEAR UNDER APPEAL. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d (e) the amount of refund due to the assessee in pursuance of the determination under clause (c) shall be granted to the assessee: Explanation (a) to section 143(1) provides as follows :- Explanation-For the purposes of this sub-section,- (a) an incorrect claim apparent from any information in the return shall mean a claim, on the basis of an entry, in the return, - (i) of an item, which is inconsistent with another entry of the same or some other item in such return; (ii) In respect of which the information required to be furnished under this Act to substantiate such entry has not been so furnished; or (iii) In respect of a deduction, where such deduction exceeds specified statutory limit which ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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