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TMI Blog2024 (6) TMI 1229X X X X Extracts X X X X X X X X Extracts X X X X ..... ulars remaining the same. The said return of income was in substance a return filed under section 139(5) though wrongly mentioned as filed u/s 139(4) for the simple reason that in the present case, the assessee has already filed the original return of income and question of filing the belated return of income u/s 139(4) doesn t arise. The said revised return of income has been filed within the stipulated time frame as so prescribed u/s 139(5) of the Act and given that no intimation u/s 143(1) has been issued by the CPC Bangalore within stipulated period of one year from end of the financial year in which return was so filed, it shall be deemed that such return of income has been accepted by the Revenue and no adjustment is warranted. Thus, both the lower authorities have failed to take into consideration revised return of income so filed and were swayed by the fact that it was a rectification application u/s 154 of the Act. Even for the sake of argument, it is considered as a rectification application, the fact of the matter is that a mistake has occurred while filing the original return of income and within 15 days of receiving the intimation u/s 143(1), the assessee has moved the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fly the facts of the case are that the assessee society originally filed its return of income on 31/08/2016 which was processed by the CPC, Bangalore whereby a demand of Rs. 11,44,930/- was raised and claim of deduction under section 11 was denied vide intimation under section 143(1) dt. 21/02/2018. Subsequently, the assessee filed a rectification request before the CPC, Bangalore on 05/03/2018 which was not disposed of by CPC, Bangalore and no order was ever passed by the CPC, Bangalore. Thereafter, the assessee received a notice under section 245 from CPC, Bangalore in respect of outstanding demand for the impugned assessment year 2016-17. In response, the assessee filed another rectification application before the jurisdictional AO under section 154 wherein it was submitted that in terms of intimation under section 143(1), a demand of Rs. 11,44,930/- was raised as the income was wrongly shown under the head business income instead of income from other sources although the application of funds towards charitable purposes has been shown in the Income Tax Return. The rectification application filed earlier on 05/03/2018 reflecting the receipt under the head income from other source ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the time limit given in statute i.e. on 26.05.2022. The AO failed to note this fact also. In view of the above, the grounds taken are dismissed. 7. Against the said findings and direction of the Ld. CIT(A), the assessee is in appeal before us. 8. During the course of hearing, the Ld. AR taken us through the original return of income filed on 31/08/2016 wherein in Part B- T-1 wherein the assessee has to disclose the statement of income, it was submitted that the assessee has shown the income of Rs. 36,59,222/-wrongly under the head Profit and Gains of Business or Profession as against income from other sources and as a result of that, the CPC, Bangalore while processing the return of income has denied the claim of exemption under section 11 regarding utilization of funds for the charitable purposes vide intimation u/s 143(1) dated 21/02/2018. It was submitted that immediately after realizing the mistake, the assessee filed the rectification application vide acknowledgment number 424115210050318 on 05/03/2018 i.e; within 15 days of receiving the intimation from the CPC, Bangalore. In this regard, our reference was drawn to the return so filed as part of the rectification application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that the assessee society could have filed revised return by giving the correct particulars in the return and he goes on further to state that the assessee has not filed the revised return of income. 13. In this regard, the ld AR has submitted that the assessee society has filed a rectification application on 5/03/2018 and the application so filed by the assessee was in fact under section 139(5) whereby the assessee has filed the revised return of income. We have gone the rectification application dated 5/03/2018 which is placed at APB pages 26-42 and find that the same has been filed as stated under section 139(4) whereby the revised return of income has been submitted rectifying the mistake initially committed while disclosing the income whereby the income has now been disclosed under the head income from other sources . The fact of the matter is that it was not a rectification application simpliciter u/s 154 but actually a return of income revising the head of income disclosing the income under the correct head of income in the hands of the assessee society and rest all particulars remaining the same. The said return of income was in substance a return filed under section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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