Assessee Trust, registered under section 12AA, had evidently demonstrated failure on part of revenue to issue prior intimation to assessee before making an adjustment under section 143(1)(a) by way of disallowing its claim of exemption under section 11, such adjustment was to be delete. Also, it was held that revenue was wrong in computing the income of the assessee at total receipts for the year under consideration. It was held that income should be understood in its commercial sense and computing total income of assessee equal to total receipts for year was not in accordance with commercial prudence and commercial sense, despite fact that both revenue and capital expenditure were accepted by revenue in processing of return .(AY. 2020-21)
ITO(E) v. Camellia Educare Trust (2023) 201 ITD 616 (Kol.)(Trib)
S. 11 : Property held for charitable purposes-Adjustment-A prior intimation is required to be served on assessee, either in writing or electronically, as contained in 1st proviso to section 143(1)(a)-Income should be understood in its commercial sense and computing total income of assessee equal to total receipts for year was not in accordance with commercial prudence and commercial sense-Addition was deleted .[S.12AA, 143(1)(a)]