Council For Fair Business Practices Vs ITO (ITAT Mumbai)
Summary: The appeal concerned an adjustment of ₹76,36,550 made by CPC while processing the assessee’s return under section 143(1) for Assessment Year 2023-24 and sustained by the learned CIT(A) as income taxable under section 115BBI.
The assessee, Council for Fair Business Practices (CFBP), is a non-profit organisation registered under section 12A and engaged in charitable objects relating to fair business practices and consumer interests. The dispute was confined to the taxability of ₹76,36,550 under section 115BBI.
The disputed amount arose from an accumulation of ₹86,82,812 made under section 11(2) in Assessment Year 2017-18. ₹10,46,266 had been utilised in Financial Year 2021-22, leaving ₹76,36,546, which the assessee stated was utilised during Financial Year 2022-23 relevant to Assessment Year 2023-24. The revised Form 10-BB electronically filed on 28.11.2023 recorded application of ₹76,36,546 out of income accumulated under section 11(2) in an earlier previous year.
The assessee explained that while preparing Schedule A of the return, ₹76,36,546 had correctly been shown as a source of funds available for application, but the corresponding application/expenditure figure was inadvertently not carried into the relevant field. This created a mismatch. At the same time, the assessee had shown income chargeable under section 115BBI as Nil in the relevant portion of the return.
