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

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 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.

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.