PRASANNMANI COLLEGE OF PHYSICAL EDUCATION &YOGA,TIGIRIA vs. ITO (EXEMPTION), CUTTACK

Shri S.K.Sarangi, ld AR appeared for the assessee and Shri Shri S.K.Sarangi, ld AR appeared for the assessee and Shri Shri S.K.Sarangi, ld AR appeared for the assessee and Shri S.C.Mohanty, ld SR DR appeared for the revenue. S.C.Mohanty, ld SR DR appeared for the revenue.

It was the submission by ld AR that the assesse is an educational It was the submission by ld AR that the assesse is an educational It was the submission by ld AR that the assesse is an educational institution, which has got registration u institution, which has got registration u/s.12AA of the Act. It was the /s.12AA of the Act. It was the P a g e 1 | 4

In reply, ld Sr DR submitted that the benefit of section 11(2) in an intimation u/s.143(1) was denied on account of delay in filing of return as also on account of delay in filing of Form 10. It was submitted that the adjustment as done in the intimation is valid and it should be upheld. In regard to assessment order u/s.143(3) of the Act, it was the submission of ld Sr DR that in the said order all the issues had not examined properly and there was defect in the assessment order passed u/s.143(3) of the Act,

We have considered the rival submissions. At the outset, on perusal of provisions of section 11 shows that when the assessee has been granted registration u/s.12AA of the Act , if the total income of an assessee includes such income derived from the property held under section 12AA, it is not to be included in the total income of the previous year of the person in receipt of the income. A perusal of provisions of section 11(2) shows that the compliance of the same is to be done before filing of the return. However, the powers had been granted to the ld CIT(E) to condone the delay. This power has been granted to the ld CIT(E) under the provision of section 119(2)(b) of the Act. When there is provision for condoning the delay, obviously, such an issue cannot be considered as prima facie adjustment, which can be done u/s.143(1) of the Act. This is because where the delay can be condoned and whether there is reasonable cause for the delay, are debatable issue. This being so, we are of the view that the adjustment as done in the intimation u/s.143(1) of the Act is not permissible as this is a mistake apparent from record. This being so, the order of the ld CIT(A) confirming the intimation u/s.143(1) stands reversed and the adjustment made in the intimation u/s.143(1) stands cancelled.

In the result, appeal of the assessee is allowed.