Assessee is\u00a0 an educational institution, filed its return of income claiming exemption on entirety of its gross receipt under section 11. Claim was denied under section 143(1)(a).\u00a0 Assessee moved an application under section 154 stating that it\u2019s income for relevant year was only Rs.11.19 lakhs, balance being corpus donation is\u00a0 eligible for exemption under section 11(1)(d).\u00a0 Assessing Officer rejected application filed by assessee on ground that assessee is\u00a0 not registered under section 12AA.\u00a0 Meanwhile, assessee applied for registration under section 12AA which was granted on 20-8-2016 with effect from assessment year 2015-16. On appeal the CIT(A) affirmed the order of the AO. The Tribunal\u00a0\u00a0 held that the assessee being admittedly not registered under section 12AA for relevant year, it\u2019s claim under section 11 could not be admitted, and was to be rejected at threshold, i.e., be it under section 11(1)(a), (b) or (d)\u00a0 Since assessee\u2019s final accounts reflected a loss on operations, which were mistakenly returned as income, matter was to be remanded to Assessing Officer for taking on record audited final accounts on basis of which assessee had returned income and then passing an order under section 154. Assessee moved an application under section 154 stating that it\u2019s income for relevant year was only Rs.11.19 lakhs, balance being corpus donation was eligible for exemption under section 10(23C)(iiiad). Assessing Officer denied same for reason that assessee\u2019s admitted gross receipt was in excess of Rs. 100 lakhs. Since provision under section 10(23C)(iiia) did not speak of gross receipt but annual receipt which would not include voluntary contribution toward corpus, assessee was entitled for exemption of its income, including capital receipt, under section 10(23C)(iiiad). (AY. 2013-14)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 154 : Rectification of mistake-Mistake apparent from the record-Property held for charitable purposes-Educational institution-Net income or gross receipts-Exemption denied-Corpus donation-Final accounts reflected a loss-Matter is remanded to Assessing Officer for taking on record audited final accounts on basis of which assessee had returned income and then pass an order under section 154-Provision under section 10(23C)(iiia) did not speak of gross receipt but annual receipt which would not include voluntary contribution toward corpus, assessee is entitled for exemption of its income, including capital receipt, under section 10(23C)(iiiad). [S. 10(23C (iiia) 11(1)(d), 12A, 12AA, 143(1)(a)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-48776","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-cGI","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/48776","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=48776"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/48776\/revisions"}],"predecessor-version":[{"id":48777,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/48776\/revisions\/48777"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=48776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=48776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=48776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}