Loading judgment…
Facts
Vimala Hospital, a trust registered under Section 12A, filed a Nil return for AY 2017-18. The CPC processed it under Section 143(1) and taxed Rs. 10,42,235 as anonymous donations, which the appellant claimed were mistakenly shown in the return and not actually received.
Held
The Tribunal upheld the CIT(A)'s decision, ruling that the CPC was justified in making the adjustment based on the original return. It stated that mistakes in the return can only be corrected by filing a revised return, as the CPC cannot go beyond the submitted information.
Key Issues
Whether the Central Processing Centre (CPC) was justified in taxing anonymous donations based on the original return of income, despite the assessee's claim of a mistake, and if a revised return was the sole method for rectification.
Sections Cited
12A, 11, 143(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM
O R D E R This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals), Aurangabad [CIT(A)] dated 30.03.2024 for Assessment Year (AY) 2017-18.
Brief facts of the case are that the appellant is a trust duly registered u/s. 12A of the Income Tax Act, 1961 (the Act). The appellant filed return of income for 2017-18 on 29.10.2017 declaring Nil income after claiming deduction u/s. 11 of the Act. The said return of income was processed by the CPC u/s. 143(1) of the Act vide intimation dated 09.03.2019, wherein the CPC brought to tax the anonymous donations included in column No. 22 of Rs.10,42,235/-.
Vimala Hospital 3. Being aggrieved by the intimation, an appeal was filed before the CIT(A) contenting that the appellant had wrongly shown in column 22 the anonymous donations. In fact no anonymous donations were received by the appellant. However, the CIT(A) confirmed the action of the AO by holding that the mistake in the return of income can be corrected only by filing revised return of income and the CIT(A) justified the CPC making the adjustment.
Being aggrieved, the appellant is in appeal before the Tribunal in the present appeal.
The learned counsel for the assessee submitted that the CPC ought not have made the adjustment on account of anonymous donations. In fact the appellant has not received any anonymous donations. The appellant prayed that directions may be issued to the CPC to amend the intimation.
On the other hand, the learned Sr. DR, placing reliance on the decision of the Pune Bench of the Tribunal in the case of Lions Nab Community Eyecare Centre v. DCIT [2023] 150 taxmann.com 115 (Pune-Trib) submits that the CPC was justified in making the adjustment of anonymous donations. The information contained in the return of income supports such conclusion.
I heard the rival contentions of both the parties and perused the material available on record. The only issue that arises for my consideration is whether the CPC was justified in making adjustment to the returned income and anonymous donations shown as income. There Vimala Hospital is no quarrel as to taxability of anonymous donations. It is the contention of the appellant trust that the appellant had not received anonymous donations. It was wrongly shown as anonymous donations in column 22 of the return of income. The CPC, while processing the return of income, can take into consideration only the information contained in the return of income and accompanied documents. The mistakes committed by the assessee while filing the return of income can be corrected only through a revised return of income. The CPC cannot go beyond the return of income. Therefore, I am of the considered opinion that there is no merit in the appeal filed by the assessee.
In the result, the appeal filed by the assessee stands dismissed.
Order pronounced in the open court on 12th February, 2025. 9.