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TMI Blog2023 (8) TMI 1108X X X X Extracts X X X X X X X X Extracts X X X X ..... expenditure account while deducing its taxable income - HELD THAT:- As where the assessee s claim for exemption u/s. 11 12 of the Act is declined, it is incumbent for the A.O. to deduce its total income in line with commercial principles. Accordingly, assessing the gross receipt of the assessee society by the A.O. suffers from a mistake which being glaring, patent, evident, and apparent from the record, had rendered the same amenable for rectification u/s. 154 of the Act. Before proceeding any further, we may herein observe that the declining of the assessee s claim for exemption u/s. 11 12 of the Act, perse would not justify assessing its gross receipt as its income for the year under consideration. Even though the assessee society ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2022, which in turn arises from the order passed by the A.O. under Sec. 154 of the Income-tax Act, 1961 (in short the Act ) dated 24.03.2021 for the assessment year 2016-17. The assessee has assailed the impugned order on the following grounds of appeal before us: 1. In the facts under the circumstances of the case, the ld. CIT(A) erred in upholding the order passed by CPC denying exemptions u/s. 11 12. The appellant is entitled for exemption which has been wrongly denied. 2. The appellant reserves the right to add, amend or modify any of the ground/s of appeal. 2. Succinctly stated, the assessee society had e-filed its return of income for A.Y.2016-17 on 27.03.2018, which was followed by a revised return, declaring an incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esentatives of both the parties, perused the orders of the lower authorities and the material available on record and considered the judicial pronouncements pressed into service by the Ld. AR to drive home his contentions. 8. At the very outset, the Ld. Authorized Representative (for short AR ) for the assessee society relied on the order passed by the ITAT, SMC Bench, Raipur, in the case of Jain Shwetamber Murtipujak Sangh Vs. ITO (2023) 68 CCH 71 (Raipur). Referring to the order above, it was averred by the Ld. AR that even if the assessee s claim for exemption u/s. 11 12 of the Act was to be declined and it was to be assessed in the status as that of AOP/BOI, its claim for deduction of the expenses ought to have been considered. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee society as its income. It is the claim of the Ld. AR that the A.O., after treating the assessee as an unregistered society, was obligated to have considered its claim for deduction of expenses raised in the income and expenditure account while deducing its taxable income. We find substance in the aforesaid claim of the Ld. AR. 11. We are unable to concur with the view taken by the lower authorities that the intimation issued by Income Tax Officer/CPC, Bengaluru u/s. 143 of the Act, therein, assessing the gross receipt of the assessee as its income does not suffer from any mistake apparent from record u/s. 154 of the Act. In our view, where the assessee s claim for exemption u/s. 11 12 of the Act is declined, it is incumben ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arity, the relevant observations of the Tribunal in the case above is culled out as under: 15. Be that as it may, as the assessee-trust does not cumulatively satisfy the set of conditions specified in Para 4(i) of the CBDT Circular No.10 (supra), and also had not filed any application for condonation of delay u/s. 119(2)(b) of the Act as provided in Para 4(ii) of the said circular, therefore, there remains no occasion for condoning the delay involved in filing of Form 10B by the assessee beyond the stipulated time period. I, thus, on the basis of my aforesaid observations, find no infirmity in the view taken by the lower authorities who had rightly declined the assessee s claim for exemption u/s. 11 of the Act. However, I may herein obs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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