SHREE SHREE MOHANANANDA SAMAJ SEVA SAMITY,KOLKATA vs. ITO(EXEMPTION)-WARD 1(3), KOLKATA, KOLKATA

In this case, the intimation u/s 143(1) of the Income Tax Act, 21961 was processed electronically by the Central Processing Centre of the Income Tax Department situated at Bangalore. While doing so, the claim of the assessee for deduction u/s 11(2) of the Act was disallowed. The assessee carried the matter in appeal, as the correspondence with the AO did not yield any result. The ld. First Appellate Authority set aside the matter to the file of the AO for examination and consideration of the claim of the assessee.

Admittedly the ld. CIT(A) has no power of setting aside. He cannot remand the matter to the file of the AO. & 1188/Kol/2018 Shree Shree Mohanananda Samaj Seva Samity A.Y.2014-15 & 2015- 16 2

Be as it may, disallowance in question cannot be made as a prima facie adjustment, while processing the return u/s 143 (1) of the Act. The issue whether the assessee is entitled for exemption u/s 11(2) of the Act and the issue whether the activities of the assessee confirm the provisions u/s 2(15) of the Act and the provision of section 11(1) (e) Act cannot be adjudicated while processing the return u/s 143(1), that too by a machine. Hence we delete the disallowance made and direct the AO to allow the claim of the assessee.

In the result the appeal of the assessee is allowed. Order pronounced in the Court on 12.09.2018.