Rani Adaikalaraj Educational Vs ITO (ITAT Chennai)
ITAT Chennai held that exemption under section 11 of the Income Tax Act is allowable inspite of certain errors while filing form 10B since the claim is supported by audited financials, revised audit report and revised computation.
Facts- The assessee is a trust engaged in running educational institutions. The assessee is a trust registered u/s. 12A of the Income-tax Act, 1961, filed its return of income for the assessment year 2018-19 on 29.09.2018, declaring total income as Rs. Nil as it applied its income over 85% for the charitable purpose declared in its objects. The case was selected for scrutiny under CASS for verification of ‘receipts of trust’. The return of income filed was also processed u/s. 143(1) of the Act by rejecting the claim of deduction u/s. 11 of the Act and made an addition of Rs.71,77,551/-.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that the assessee has maintained books of accounts and which was audited by the statutory auditors for the A.Y.2018-19 and filed the return of income along with audit report in Form 10B on 28/09/2018, which is within the due date prescribed under the Act. However, the certain errors have been made in filling the form 10B.
