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TMI Blog2023 (10) TMI 1238X X X X Extracts X X X X X X X X Extracts X X X X ..... ct") by the National Faceless Assessment Centre, Delhi ("Ld. CIT(A)"), upholding the addition of Rs. 54,03,420 by an order u/s 154 of the Act and the resultant demand of Rs. 17,80,181/- raised by the Ld. Assessing officer, is bad in law and liable to be quashed. 2. That the Ld. CIT(A) has erred on facts and in law in making the said addition as the assessee is registered u/s 12A of the Income Tax Act, 1961 and therefore is entitled to the benefit u/s 12A/12AA of the Income Tax Act, 1961. However, the same was denied to the assessee by not rectifying the clerical mistake committed by the assessee at the time of online filing of its ITR for AY 2013-14. 3. That the Ld. AO as well as Ld. CIT(A) have failed to consider the fact that it was t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not been done. 4. Aggrieved, the assessee filed appeal before the Ld. CIT(A) who dismissed the appeal of the assessee by recording the following findings:- "4. I have gone through the fats of case and material available on record. The issue in appeal is fresh claim of benefit under section 12AA of Income Tax Act, 1961 via rectification application under section 154 of Income Tax Act, 1961. There was no scrutiny assessment in this case. 5. Similar issue has come up before ITAT Chandigarh in the case of Harinder Singh vs ITO reported in [2012] 17 Taxmann.com/193 (Chd). In this case, the assessee field his return claiming exemption under section 10(37) in respect of enhanced compensation on acquisition of land. The assessee also claimed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pt u/s 10(37) of the Income-tax Act, 1961, be considered and treated as return of income, wherein foundational material exists, for the purpose of rectification of mistake apparent from the records. Such contention of the appellant is contrary to the scheme of Income-tax Act, 1961 and relevant provisions of Section 139 and 154 of the Act. The appellant did not furnish such details and material in the return of income, which was processed and accepted as such by the AO u/s 143(1) of the Act. It is undisputed fact that such materials or claim of the assessee is not available in the assessment record, before the AO, at the time the return of income was processed by the AO. Further, the AO has no jurisdiction u/s 143(1) of the Act to make adjus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Ld. AR submitted that the assessee obtained registration under section 12A on 30.12.1993. Since then it has filed its return on that basis for past several years which have been accepted by the Department. However, in return for AY 2013-14 by mistake the assessee mentioned "no" in the column mentioning whether the society is registered under section 12A. It is pointed out that no change in the object clause or activities has taken place. Total income of Rs. 54,03,419/- has been applied by the assessee for charitable purposes and all other requirements including investment of funds in accordance with section 11(5) have been adhered to. The Ld. AR contended that a procedural error cannot override a substantive provision of law and if th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee declared Nil taxable income after claiming Rs. 54,03,420/- as income applied for charitable purposes as well as carried forward under section 11(1) & 11(2) of the Act. The rectification application filed by the assessee has been rejected on the ground that the mistake is not apparent from the record. We are not inclined to subscribe to this view of the Revenue. 9. It is now well established that mistake apparent from the record may be one that can be gathered from the entire record of the case provided it does not call for evidence extraneous to the record. As stated earlier the assessee is a charitable trust registered under section 12A long ago and has all along been enjoying the benefits arising there-from in past years as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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