The petitioner incurred expenditure towards application of ...

Non-profit misrepresented income application due to tech glitch, court orders reconsideration.

Case Laws     Income Tax

November 5, 2024

The petitioner incurred expenditure towards application of income as required u/s 11(1)(d) for the year under consideration, which was evident from the computation of total income and Form No. 10B issued by the Chartered Accountant. However, the same was not reflected in Form ITR-7 uploaded by the petitioner, showing a nil amount in column no. 9 regarding the application of income for charitable or religious purposes. Since the petitioner applied the income/donation received for charitable purposes, they are entitled to the benefit of the same. The respondent should have considered this fact while deciding the revision application u/s 264. Following the Shree Rudra Technocast Private Limited case, the impugned order passed u/s 264 is quashed and set aside, and the matter is remanded back to the respondent to pass a fresh de novo order u/s 264 on merits, considering that due to a technical glitch, the income applied by the petitioner is not reflected in the return of income in Form ITR-7, which should be taken into consideration while computing the income and tax for the year under consideration.

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