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TMI Blog2021 (5) TMI 861X X X X Extracts X X X X X X X X Extracts X X X X ..... ciety with charitable objects and is running two recognized educational schools and in respect of income derived therefrom (aggregate receipts Rs. 1,46,73,932/-) filed its return of income in Form ITR-7 u/s. 139(4A) of the Act, declaring total income of Rs. 2,40,752/- without claiming any exemption u/s. 11/12/10(23C)(iiiad)/10(23C)(vi) of the Act, as the society is neither registered u/s. 12A nor approved u/s. 10 (23C) (vi) of the Act. In the intimation u/s. 143(1) dated 10.03.2016 CPC charged maximum marginal rate without allowing the basic exemption limit which was challenged before the Id CIT(A)-40, New Delhi, who in her order dated 26-07-2019 was wrong: (i) In holding that there appears to be no infirmity in the action of the CPC in c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidered twice thereby the income was computed by CPC at Rs. 3,12,124/- instead of 2,40,752/-. Further, the tax was computed at the maximum marginal rate at 30% at total income of Rs. 3,12,124/- instead of applying the normal slab rate. 4. Aggrieved against this, the assessee preferred appeal before Ld. CIT(A) who after considering the submissions, partly allowed the appeal of the assessee. Thereby, the Ld. CIT(A) directed the CPC to consider the income under head "profits and gains", "business and profession" of Rs. 1,69,380/-. Therefore, the amount who was considered twice to be deleted. However, in respect of applying the maximum marginal rate, the explanation of the assessee was not accepted and the grounds raised by the assessee in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ii) of the Act, found difficult to upload the income in ITR-7. He further contended that Ld. CIT(A) failed to appreciate that in the event of any infirmity/defect in filing of ITR before processing the return u/s. 143(1) of the Act and charging of maximum marginal rate, CPC was required to give an opportunity to the assessee u/s. 139(9) of the Act. 7. Ld. Sr. DR opposed these submissions and supported the order of Ld. CIT(A). 8. I have heard the rival submissions and perused the material available on record. It is the contention of the assessee that the assessee's society is not registered u/s. 12A of the Act, is not approved u/s. 10(23C)(iiiad) and 10(23C)(vi) of the Act. It is also contended that CPC failed to give an opportunity in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hold that Ld. CIT(A) was not justified in taking contrary stand in this case of the assessee. Hence, the Assessing Officer is hereby directed to charge tax at normal rates. 10. Now, coming to ITA No. 7643/del/2019 for the Assessment Year 2017-18. The assessee has raised following grounds of appeal:- 1. "That where the appellant is a registered society with charitable objects and is running two recognized educational schools and in respect of income derived therefrom (aggregate receipts Rs. 2,21,32,550/-) filed its return of income in Form ITR-7 u/s. 139(4A) of the Act, declaring total income of Rs. 2,96,610/- without claiming any exemption u/s. 11/12/10(23C)(iiiad)/10(23C)(vi) of the Act, as the society is neither registered u/s. 12A no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o give an opportunity u/s. 139(9) of the Act." 11. The facts and grounds are identical in this year as well. Ld. representatives of the parties have adopted the same arguments. 12. Having considered the rival submissions, I hold that my decision in ITA no. 7641/Del/2019 for Assessment Year 2014-15 shall apply mutatis mutandis on this year as well. The grounds raised are allowed. The Assessing Officer is hereby directed to charge normal rate as claimed by the assessee. 13. In the result, both appeals of the assessee i.e. ITA Nos. 7641/Del/2019 [Assessment Year 2014-15] & 7643/Del/2019 [Assessment Year 2017-18] are allowed. Above decision was pronounced on conclusion of Virtual Hearing in the presence of both the parties on 18th May, 2021 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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