Venkateswara Educational Trust Vs ITO (ITAT Chennai)
ITAT Chennai held that assessing authority cannot entertain the claim of deduction of expenditure since assessee has not furnished revised return. Accordingly, appeal of the assessee dismissed.
Facts- Against the intimation u/s. 143(1), the assessee filed the rectification petition u/s. 154 of the Act. AO noticed that the assessee trust is not registered u/s. 12AA of the Act and accordingly rejected the rectification petition of the assessee by his order dated 02.11.2015. Subsequently, the assessee also filed one more rectification petition on 17.11.2015 before AO requesting to allow the expenditure incurred like salary administrative expenditure, etc. While rejected the rectification petition, AO observed that as per section 154 of the Act, the scope of rectification is limited to rectify a mistake apparent from record. Section 154 does not confer upon AO any powers to admit a new claim of deduction/exemption. Further, the change in the claim of deduction or status of the assessee would not mount to mistake apparent from records, and, as such, it cannot be rectified u/s. 154 of the Act. Against the rectification order, the assessee filed an appeal before CIT(A), which was dismissed.
Against the intimation u/s. 143(1) of the Act, the assessee filed an appeal against disallowance of corpus donation of ₹.28,91 ,000/-, disallowance of expenditure claimed against the gross receipts and charging of interest. CIT(A) dismissed the appeal.
