THE JAMSETJI NUSSERWANJI TATA PARSI HIGH SCHOOL TRUST,NAGPUR vs. DEPUTY DIRECTOR OF INCOME TAX CPC, BENGALORE, BANGALORE

The present appeal has been filed by the assessee challenging the impugned order dated 16/10/2023, passed under section 250 of the Income Tax Act, 1961 ("the Act") by the learned Commissioner of Income Tax (Appeals), Mumbai, [“learned CIT(A)”], for the assessment year 2021-22, emanating out a rectification order dated 07/03/2023, passed under section 154 of the Act.

2. In its appeal, the assessee has raised following grounds:–

“1. On the facts and circumstances of the case, order passed Commissioner of Income Tax Appeal, National Faceless Appeal Centre U/s. 154 of the Income Tax Act, 1961 is illegal, invalid and bad in law;

The Jamsetji Nusserwanji Tata Parsi High School Trust ITA no.377/Nag./2023

2. On the fact and circumstances of the case learned Commissioner of Income Tax Appeal, National Faceless Appeal Centre erred in not considering the reply filed by the assessee on 06/03/2023 before the learned Deputy Director of Income Tax, CPC, therefore order passed in unjustified, unwarranted and excessive; 3. On the fact and circumstances of the case learned Commissioner of Income Tax Appeal, National Faceless Appeal Centre erred in not considering that DDIT without going into merits of the case raised demand and adjusted the entire fund of assessee without providing proper opportunity to being heard and passed order U/s. 154 of the Income Tax Act, therefore the order passed in unjustified, unwarranted and excessive; 4. On the facts and circumstances of the case learned Commissioner of Income Tax Appeal, National Faceless Appeal Centre ought to have considered that the Deputy Director of Income Tax, CPC has not provided proper opportunity to explain the case and without considering the reply filed by the assessee trust passed order U/s. 154 of the Income Tax Act, therefore order passed is unjustified, unwarranted and excessive; 5. On the facts and circumstances of the case learned Commissioner of Income Tax Appeal, National Faceless Appeal Centre erred in not considering reply filed by the assessee and thereby confirmed order denying the exemption U/s. 11 & 12 of the Income Tax Act, when the assessee trust liable for the same, therefore order passed is illegal, valid and bad in law; 6. On the facts and circumstances of the case learned Commissioner of Income Tax Appeal, National Faceless Appeal Centre erred in not accepting that the assessee has submitted reasonable cause for filing of Form No. 10B after due date of filing of return before the Deputy Director of Income Tax, CPC, therefore order passed is illegal, invalid and bad in law; 7. On the facts and circumstances of the case learned Commissioner of Income Tax Appeal, National Faceless Appeal Centre erred in considering the fact the assessee has filed return of income before filling of Form 10B alongwith all financial statement, therefore the exemption denied U/s. 11 & 12 is unjustified, unwarranted and excessive; 8. The assessee denies the liability of interest charged U/s. 234A, 234B and 234C of the Income Tax Act. Without the prejudice, levy of interest U/s. 234A, 234B and 234C of the Income Tax Act is unjustified, unwarranted and excessive.”

The Jamsetji Nusserwanji Tata Parsi High School Trust ITA no.377/Nag./2023 of audit report fixed on 15/02/2022. The assessee trust has filed return of income on 13/03/2022, along with audit report and due date of filing of return of income was 15/03/2022. Thus, there is no delay in filing of return of income with audit report. Accordingly, an order under section 154, was passed suo-motu denying the exemption under section 11 and 12 of the Act.

i) Ernst & Young Merchant banking Services LLP Vs. ADIT, ITA no.2333/Mum./2022, order dated 20/03/2023; wherein it has been held that “Without giving proper opportunity of being heard to the assessee/proper notice for adjustment through applying section 143(1)(a), no alteration in the returned figures can be done by CPC,Bangalore. In this appeal we observed that this basic provision of law has not been followed, hence action of CPC, Bangalore in adjusting retuned income is null and void and without jurisdiction”. ii) M/s. Gangji Shamji Chedda (Princewala) Charitable trust Vs. DCIT, ITA no.1528/Mum./2022, order dated 31/10/2022, wherein the Tribunal held that “No doubt in order to claim the deduction under section 11 & 12 of the Act conditions laid down in the provisions contained under section 12A(B) of the Act need to be complied with by the assessee trust but at the same time when audit report in form 10B has not been filed alongwith return of income due to some technical reasons DCIT, CPC was not empowered to make any adjustment/raise a demand without issuing a notice to the assessee.” iii) CIT v/s Shri Devradhan Madhavlal Genda Trust, [1998] 230 ITR 714 (M.P); iv) CIT v/s Rai bahadur Bissesswarlal Motilal Malwasie Trust, [1992] 65 taxman 273 (Cal.); v) CIT v/s Gujarat Oil & Allied Industries, [1993] 201 ITR 325 (Guj.); vi) Gyandeep Charitable Trust v/s ADIT, ITA No.555/Ahd./2023 dated 03/01/2024; vii) Hari Gyan Pracharak Trust v/s DCIT, 2023 TaxPub(DT) 3719 (Ahd- Trib)’ Page | 3

The Jamsetji Nusserwanji Tata Parsi High School Trust ITA no.377/Nag./2023 viii) Visha Oswal Jain Sewa Samaj v/s ITO (Exemp.), [2023] TaxPub (DT) 6392 (Ahd-Trib); and 9. Shree Bhairav Seva Samiti v/s ITO (Exemp.), [2023] ITR 708 (Mub- Trib).

The Jamsetji Nusserwanji Tata Parsi High School Trust ITA no.377/Nag./2023 play, the matter needs to be remanded back to the Assessing Officer to arrive at the total income after conducting such verification as may be warranted.