Case Law Details
Vivekananda Seva Trust Vs ACIT Exemptions (ITAT Chennai)
Introduction: This article discusses the recent ITAT Chennai order concerning Vivekananda Seva Trust’s appeal against the denial of deduction under Section 11 as applicable to a registered charitable trust. The denial was due to inadvertent errors in filling up certain columns in the Income Tax Return forms.
Analysis: Vivekananda Seva Trust filed its Income Tax Return using ITR-7, inadvertently filling up a business-related column from Schedule-BP, leading to the denial of the deduction. The CPC processed the return, treating gross receipts as business income. The trust sought rectification, which was also denied, as the time limit to file a revised return was over.
The ITAT Chennai observed that the trust holds valid registration as a charitable trust and the deduction denial resulted from inadvertent errors in the return forms. No fresh claim was made, and the mistake shouldn’t prejudice the trust’s valid claim. Therefore, the ITAT directed the AO to verify the claim and recompute the income of the trust.
Conclusion: The ITAT Chennai allowed the appeal of Vivekananda Seva Trust, directing the re-computation of its income due to inadvertent errors in the Income Tax Return forms.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
