Held that there was no denial of the fact that the claim for deduction under section 11 of the Act was not made in the return of income. The assessee had claimed deduction under section 10(23C) of the Act in the return. As the form essential for claiming exemption under section 10(23C) was not furnished, the claim had been rightly rejected. Therefore, the adjustment made while processing the return, could not be faulted. Tribunal also held that there is no error in the direction of the Commissioner (Appeals) to avail of the remedy under section 119 of the Act to file a revised return. The assessee was allowed an opportunity in the intimation to file a rectification application, if so required, which was not availed of. Accordingly, the remedy of rectification of mistake had to be availed of before resorting to the alternate remedy under section 119(2)(b), if required. The assessee may file an application under section 154 of the Act to rectify the mistake in the intimation, as deemed proper. The assessee was also free to avail of the remedy under section 119 of the Act, if he so desired.(AY.2022-23)
Shri R. V. Shah Charitable Trust v. Dy. DIT (2024) 111 ITR 83 (SN) (Ahd)(Trib)
S. 11 : Property held for charitable purposes-Prima facie adjustments-Claim inadvertently made under Section 10(23C)-Failure to file mandatory form-Prima facie adjustment is proper-No action can be taken merely basis of Form 10B is filed in Appellate Proceedings-Direction of Commissioner (Appeals) to avail of remedy under Section 119 to file revised return is proper [S.11, 119, 143(1), 154, Form No 10B]