Case Law Details
City Manager Association Ahmedabad Municipal Corporation Vs DCIT (ITAT Ahmedabad)
Let us consider the scope of section 154 for making prima facie adjustment while processing return under section 143(1)(a) of the Act i.e. process of dealing with the return is an ex parte process. It is pertinent to observe that whenever any debatable issue is involved an explanation of the assessee is required, then on such issue, no prima facie adjustment in an ex parte proceedings can be made. If facts are looked into, then it would reveal that both the issues were debatable one, where more than one opinion was possible. Adjustment under section 143(1)(a) is not permissible on both these aspects.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This appeal is filed by the assessee against order dated 18.6.2019 in appeal no. CIT(A)-9/10060/DCIT passed by the Ld.Commissioner of Income-tax (Appeals)-9, Ahmedabad [for short “Ld.CIT(A)] relating to the assessment year 2016-17.
2. Brief facts of the case is that the assessee is a charitable trust registered under the Income tax Act, 1961 and enjoying benefits of section 11 and 80G of the Act. For the Asstt.Year 2016-17, the assessee has filed its return of income on 28.10.2016 declaring Rs.2,31,725/-. The return of income was processed under section 143(1) of the Act by intimation order dated 30.3.2018, wherein income of the assessee has been determined at Rs.26,95,625/- and demanded tax of Rs.7,02,246/- BY THE Dy.Commissioner of Income-tax, CPC Centre, Bangalore. It is seen from the intimation that deduction of Rs.5,40,082/- claimed by the assessee has been reduced to Rs.2,51,182/-. Similarly deduction of Rs.21,75,000/-claimed under section 11(2) has also not allowed, resulting in increased total income of Rs.26,95,695/- as against the returned income of Rs.2,31,730/-.
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