| Question And Answer | |
|---|---|
| Subject: | Adjustment u/a 143(1)(a)(ii) |
| Category: | Income-Tax |
| Querist: | Sakshi Dokania |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | adjustment, Assessment |
| Date: | December 15, 2023 |
Assessee is a Trust running school, whose gross receipt falls under Rs. 5cr.
For a.y. 23-24 the assessee trust filed it’s ITR u/s 139(4C) belatedly on 30.10.23 and claimed exemption u/s 10(23c)(iiiad).
In Schedule IE-4, following details were filled :
- Annual gross receipt – 50L
- Amount applied for objective – 48L
- Balance accumulated – 2L
In Part B2 of Part B – TI : exemption amount claimed u/s 10(23C)(iiiad) – 2L
Now, the assessee has received adjustment notice u/s 143(1)(a)(ii), which says : “Income due to disallowance of exemption under clauses of Section 10 entered at Sl No. 3 of Schedule OS is less than the difference between “Gross receipts ” in Sl. No. 3 of Schedule IE-4 & exemption claimed in Part B2 of Part B – TI.
Hence the amount mentioned at Sl. No. 1(e) ” Income due to disallowance of exemption under clauses of Section 10″ in Schedule OS is recomputed accordingly.
Kindly suggest if the return filed by assessee is correct? Whether the exemption amount filled in Part B2 of Part B – TI
Also what shall be done further in this case?
Make rectification application under section 154 of the Act. If no show cause was issued before making an adjustment , the assessee can also file an appeal before the CIT( A) The assessee should make an application to the Commissioner to condone the delay in filing of the return . One has to study the facts , hence it may be desirable to consult the tax consultants with all the facts .
Pending Inhouse EXPERT’s Answer, own thoughts to share:
^ 1.“Now, the assessee has received adjustment notice u/s 143(1)(a)(ii), which says : DUE TO DISALLOWANCE OF EXEMPTION UNDER CLAUSES OF SECTION 10 ENTERED AT SL NO. 3 OF SCHEDULE OS IS LESS THAN …….”.
2. “Hence the amount mentioned at Sl. No. 1(e) ” INCOME DUE TO DISALLOWANCE OF EXEMPTION UNDER CLAUSES OF SECTION 10″ IN SCHEDULE OS IS RECOMPUTED ACCORDINGLY.”
FONT (supplied)
>https://taxguru.in/income-tax/cpc-issues-processing-section-1023ciiiad-exemption.html
>https://itatonline.org/digest/articles/new-registration-process-for-ngos-u-s-12ab-80g-of-income-tax-act-1961/
>https://taxguru.in/income-tax/income-tax-compliance-for-charitable-educational-institutions-ay-2023-24.htm
‘IDT’
>https://itatonline.org/digest/articles/learning-from-the-legacy-tax-treatment-of-charitable-activities-under-gst/
If so done, personally, one has good reasons to believe that such problems- at least some if not all, may be attributable to the deficiency in the computerised SYSTEM in place (CPC)!
Should that be so, any variations made under the guise of ‘ prima facie adjustments’, selves, may lend scope for dispute and litigation !?
EDITOR :Pending ‘expert’s ANSWER , suggest to have the posted comment displayed, to serve the intended purpose of guidance to the querist and others similarly placed !