Case Law Details
ITO Vs Camellia Educare Trust (ITAT Kolkata)
ITAT Kolkata held that in respect of any adjustment proposed to be made u/s 143(1)(a), a prior intimation is required to be served on the assesse. Failure to issue such prior intimation to the assessee before making an adjustment by way of disallowing the claim of exemption u/s. 11 of the Act is unjustified.
Facts- The assessee is a Trust registered u/s. 12AA of the Act. Assessee filed its return of income in Form ITR 7 u/s. 139(4A) of the Act on 31.03.2021 reporting total income at Rs. Nil. Assessee also filed Form 10B on 30.03.2021. The extended due date for filing return of income in respect of year under consideration was 15.02.2021. In the return filed by the assessee, it reported total receipts of Rs.5,67,16,797/-. Against these receipts, assessee claimed application of income u/s. 11 of the Act of Rs.6,83,64,500/-
Since return of the assessee was a belated return in terms of provisions contained in Sec. 139(4A), Centralised Processing Centre of Income Tax, Bengaluru (CPC) while processing the return, made an adjustment by not allowing the claim of the assessee u/s. 11 towards application of income.
CIT(A) allowed the claim of the assessee by observing that the delay in filing the return of income and Form 10B was due to the outbreak of Pandemic of Covid-19 coupled with a fire which broke at the premises of the assessee wherein most of the original office records, files, documents and computer hard disk were burnt.
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