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TMI Blog2024 (6) TMI 1421X X X X Extracts X X X X X X X X Extracts X X X X ..... e. Therefore, this claim being out of the purview of mistake apparent from record, should not be accepted. We find that CPC has made an error while taxing the residuary figure i.e. Rs.76,26,863/- being the excess of income over expenditure without allowing deduction of 15% as statutorily available with the assessee. Further, by Finance Act, 2023, Section 115BBI has been inserted to the statute which provides a special rate of tax at the rate of thirty percent on the aggregate of such specified income accumulated or set apart in excess of fifteen per cent of the income where such accumulation is not allowed under any specific provision of this Act. Thus the legislature is of the opinion that only the amount in excess of 15% which is not appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome over expenditure is of Rs.76,26,864/-, which is more than 17% of the gross receipts. While processing the return CPC Bangalore has taxed the entire excess income over expenditure of Rs.76,26,863/- instead of taxing the excess amount of 15% of the gross receipts as 15% is statutorily available to the assessee. The said application was rejected by the ld. AO stating that there was no mistake apparent from the record vide order dated 30.05.2022, against which an appeal was preferred before the ld. CIT(A) and the ld. CIT(A), NFAC has dismissed the appeal of the assessee, therefore, the present appeal is filed before us. 3. During the course of hearing ld. AR of the assessee taken five grounds of appeal which are related to the single issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the purview of mistake apparent on record. He, therefore, prayed for confirmation of the orders of the lower authorities. 6. We have considered the rival submissions. It is seen that the assessee has made two claims. First, it had applied more than 85% of the gross receipts of the preceding years, therefore, it is requested that the set off of excess application be allowed. Secondly, only the shortfall in application of 85% be taxed. From the perusal of the order passed u/s.154 of the Act i.e. the impugned order, we find that there was no claim with respect of the set off of excess claim made during the preceding years nor is borne out from the records. No such claim was made in the return of income filed by the assessee. Therefore, this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m marginal rate of income-tax will apply only to that part of the income which has forfeited exemption under the said provisions. 7. Further, by Finance Act, 2023, Section 115BBI has been inserted to the statute which provides a special rate of tax at the rate of thirty percent on the aggregate of such specified income accumulated or set apart in excess of fifteen per cent of the income where such accumulation is not allowed under any specific provision of this Act. 8. From this, it is clear that the legislature is of the opinion that only the amount in excess of 15% which is not applied and otherwise not allowed to be exempted is only taxed. In view of this discussions, the application of the assessee for rectification for allowing deducti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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