SOFTWARE POINT,BHABA NAGAR vs. ITO, EXEMPTION, BERHAMPUR

आयकर अऩीऱीय अधधकरण, “एस.एम.सी” न्यायऩीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH CUTTACK श्री जाजज माथन, न्याययक सदस्य के समक्ष । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER आयकर अऩीऱ सं/ITA No.06/CTK/2023 (ननधाारण वषा / Assessment Year :2018-2019) Software Point, Vs ITO (Exemption), Berhampur/ Bhaba Nagar, 3rd Lane, DCIT(CPC), Bangalore Berhampmur-760004 PAN No. : AABAS 2235 B (अऩीऱाथी /Appellant) .. (प्रत्यथी / Respondent) ननधााररती की ओर से /Assessee by : Shri A.K.Padhi, CA राजस्व की ओर से /Revenue by : Shri S.C.Mohanty, Sr. DR सुनवाई की तारीख / Date of Hearing : 03/05/2023 घोषणा की तारीख/Date of Pronouncement : 03/05/2023 आदेश / O R D E R This is an appeal filed by the assessee against the order of the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 16.11.2022, passed in DIN & Order No.ITBA/NFAC/S/250/2022- 23/1047441377(1), for the assessment year 2018-2019. 2. It was submitted by the ld. AR that the assessee had filed his return of income for the relevant assessment year on 10.10.2018. It was the submission that the assessee is running an educational institution. The assessee has been claiming exemption u/s.10(23C)(iiiad) of the Act. It was the submission that in the return filed, there was no provision available for showing the computation of the exemption u/s.10(23C)(iiiad) of the Act. Therefore, the assessee left with no other alternative, filled column No.3 & 4 of the return which was in regard to the aggregate of income referred to in sections 11, 12 and sections 10(23C)(iv), 10(23C)(v), 10(23C)(vi) & 10(23C)(via) of the Act. In column No.4, the

2 ITA No.06/CTK/23 assessee has shown that the application and in column 7 the total was computed and the difference of Rs.9697/- has been shown in column 9(c) as exemption u/s.10(23C)(iiiad) of the Act. It was the submission that the return filed by the assessee came to be processed and an intimation came to be issued u/s.143(1) of the Act on 26.09.2019, wherein the claim of application of Rs.3,37,713/ came to be disallowed on the ground that the assessee did not have registration u/s.12A & 12AA of the Act. It was the submission that as there was no provision for showing the computation of the exemption claimed u/s.10(23C)(iiiad) of the Act, it cannot be said that there was any mistake apparent from the record or there was any incorrect claim apparent from the information in the return. It was the submission that the assessee does not have registration u/s.12A, 12AA of the Act and the assessee has never claimed for the exemption u/s.11 or 12 of the Act. It was the submission that as the assessee was running an educational institution and its turnover was below Rs.1 crore, the assessee had rightly claimed its income to be exempted u/s.10(23C)(iiiad) of the Act. It was the prayer that the intimation as issued may be quashed. 3. In reply, ld. Sr. DR submitted that it was the incumbent upon the assessee to show the calculation of the deduction u/s.10(23C)(iiiad) of the Act in its return and as the assessee has not shown the expenses in the appropriate clauses, it was an incorrect claim which had been disallowed in the intimation u/s.143(1) of the Act.

3 ITA No.06/CTK/23 4. I have considered the rival submissions. A perusal of the return as provided by the ld. Sr. DR shows that there is no provision in the return for showing the computation of the exemption u/s.10(23C)(iiiad) of the Act. In the absence of the provision for submitting the details in regard to the computation of the exemption u/s.10(23C)(iiiad) of the Act, it cannot be said that there is an incorrect claim in regard to the claim of expenditure which has been made in clause 4 of the return. In any case, this is not an adjustment which is permissible in the intimation u/s.143(1) of the Act. Consequently, the adjustment as made in the intimation is set aside and the AO is directed to accept the return of the assessee as filed. 5. In the result, appeal of the assessee is allowed. Order dictated and pronounced in the open court on 03/05/2023. Sd/- (जाजज माथन) (GEORGE MATHAN) न्यानयक सदस्य / JUDICIAL MEMBER कटक Cuttack; ददनाांक Dated 03/05/2023 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतलऱपऩ अग्रेपषत/Copy of the Order forwarded to : 1. अऩीऱाथी / The Appellant- Software Point, Bhaba Nagar, 3rd Lane, Berhampmur-760004 प्रत्यथी / The Respondent- 2. ITO (Exemption), Berhampur/ DCIT(CPC), Bangalore आयकर आयुक्त(अऩीऱ) / The CIT(A), 3. आयकर आयुक्त / CIT 4. ववभागीय प्रयतयनधध, आयकर अऩीऱीय अधधकरण, कटक / DR, 5. आदेशानुसार/ BY ORDER, ITAT, Cuttack गार्ज पाईऱ / Guard file. 6. सत्यावऩत प्रयत //True Copy// (Assistant Registrar) आयकर अऩीऱीय अधधकरण, कटक/ITAT, Cuttack