Home of Love Vs ITO (ITAT Cochin)
Assessee is a charitable institution who filed its return of income which was processed u/s 143 granting exemption u/s 11. Thereafter, CPC issued a notice u/s 154 denying the said exemption by stating that Form 10B was not filed within prescribed time, without giving assessee an opportunity of being heard. On appeal CIT had confirmed the action of CPC.
Sec 154 states that an amendment, which has the effect of increasing the liability of assessee shall not be made unless the Dept. has allowed the assessee a reasonable opportunity of being heard.
Tribunal held that time limit prescribed for furnishing Form 10B is only directory in nature & the same is available at the time of processing return by CPC, as a result, delayed filing is not prejudicial to the Dept. CPC should not have exercised suo moto power to pass rectification order u/s 154 without giving an opportunity of being heard.
Rectification order passed by CPC was held as not valid & hence appeal filed by assessee was allowed.
FULL TEXT OF THE ORDER OF ITAT COCHIN
This appeal filed by the assessee is directed against the order of the National Faceless Assessment Centre / Commissioner of Income-tax (Appeals) [“CIT(A)” for short] dated 20.12.2024 for the assessment years 2021-2022.
