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TMI Blog2022 (4) TMI 448X X X X Extracts X X X X X X X X Extracts X X X X ..... on 2.9.2014 is on record. Further the uploading of Form-10B which is a audit report u/s.12A(b) of the Act, proves that the mistake committed by assessee in claiming exemption u/s.10(23C) is inadvertent mistake as by committing such a mistake the assessee is not going to gain anything. Fact of the matter is that assessee is registered u/s.12A of the Act and is eligible for exemption u/s.11 of the Act. Therefore for inadvertent mistake the assessee cannot be penalized. Since the assessee has been claiming exemption u/s.10(23C) in the earlier years therefore during the year under consideration there is high probability that assessee again claimed exemption u/s.10(23C) by overlooking the fact that it had already got registration u/s.12A of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is registered under section 12A of the Act and is eligible for exemption under section 11 12 of the I.T. Act, 1961, but on account of inadvertent error on the part of the filing clerk section 10(23C) having been mentioned, the CIT(A) was not justified in denying the assessee society exemption under section 11 and 12 of the Act. 04 Because on a proper consideration of the facts and circumstances of the case, the assessee society being registered under section 12A is eligible for exemption under section 11 and 12 of the Act, the CIT(A) should have allowed the exemption as claimed and as denied by the CPC. 05. Because the return processed under section 143(1) was beyond the time prescribed for issue of notice u/s. 143(2), there was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eceipt of the assessee exceeded ₹ 1.00 crore therefore the exemption u/s.10(23C) was available to the assessee only if the assessee had obtained necessary approval and which it had not obtained. The ld. AR submitted that assessee filed rectification application u/s. 154 which was also rejected and appeal filed before ld. CIT(A) was also rejected. The ld.AR submitted that since the assessee had by mistake claimed exemption under a wrong section and all other documentary evidences regarding existence of registration u/s. 12A and uploading of audit report u/s. 12A was available with the Revenue, there was necessarily a mistake apparent from record which the CPC should have rectified or in the alternative the ld. CIT(A) should have allowe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so uploaded Form-10B which is audit report u/s. 12A(b) of the Act. However, in the return of income, the assessee claimed exempt income u/s.10(23C) instead of claiming the same u/s.12A of the Act. The CPC rejected the claim of the assessee u/s.10(23C) by holding that the assessee had not obtained necessary approval from the prescribed authority and the receipts of the assessee exceeded ₹ 1.00 crore. The application for rectification u/s.154 was also rejected and on appeal before ld. CIT(A), the ld. CIT(A) also dismissed the appeal of the assessee by first holding that there was no mistake apparent from record and further held that there is lot of difference between the claim of exemption u/s.10(23C) and Section 11 of the Act. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where proceedings or other particulars before them indicate that some refund or relief is due to him. This attitude would, in the long run, benefit the Department for it would inspire confidence in him that he may be sure of getting a square deal from the Department. Although, therefore, the responsibility for claiming refunds and reliefs rests with assessees on whom it is imposed by law, officers should:- (a) Draw their attention to any refunds or reliefs to which they appear to be dearly entitled but which they have omitted to claim for some reason or other; (b) Freely advise them when approached by them as to their rights and liabilities and as to the procedure to be adopted for claiming refunds and reliefs. 5. In view of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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