Seth RB Moondhra Memorial Charitable Trust Vs CIT Exemption -1 (ITAT Jaipur)
ITAT Jaipur held that disallowance of exemption under section 11 of the Income Tax Act on the basis of bonafide error in ITR is not justified. Accordingly, appeal allowed and benefit granted.
Facts- The assessee appellant the AOCPC while processing the ITR of the assessee, has not allowed 15 % of the receipt for an amount of Rs. 43,272/- of the impugned intimation in question]. The CPC also while taxing the income charged the tax at Maximum Marginal Rate [ MMR] and has not considered that the assessee is a trust registered u/s. 12A [ page 83 registration certificate ] merely because the assessee while filling the ITR against the information whether the trust is registered as u/s. 12A/12AA stated “NO” and therefore, the income was charged at MMR.
CIT(A) dismissed the appeal since the same was filed belatedly. Being aggrieved, the present appeal is filed.
Conclusion- Held that the assessee has filed the audit report which suggest that the assessee is trust. Even the assessee in the past and subsequent year allowed the benefit of section 12A even the trust still enjoy that benefit. Merely an error in the ITR which was Bonafide the deduction which are otherwise allowable cannot be denied.
