Penalty u/s 270A of IT Act on Trust exempted under 10(25) of the Act

    Posted By : Pankaj / Published on : 05-Jan-2020 05:22 AM / View : 803 / Comment : 0
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    Fact are as follows

    ACIT has pass order under for exemption of Rs 600000 and Nil demand under Section 143(3) for for AY 2017-18 of Trust which is registered u/s 10(25) of the Act.

    As per income & expenditure for the year as follows
    Gross receipt Rs 1250000
    Expenditure Rs 650000
    Net Income Rs 600000

    In return assessee fill exemption of Rs 1250000 (Gross) instead of Rs 600000 (net) for the year.

    During proceedings, request made for making adjustments for clerical mistake apparent from material record.
    Also submitted ITAT Delhi order in the matter of ICAI vs CPC banglor, where ITAT said for making prima facie adjustments apparent from records.

    However, AO passed order of correct exemption of Rs 600000 and pass at Nil income and tax.
    Further, initiated penalty of 270A for under reporting of Income in consequences of mis reporting.

    1. Whether this case is of under reporting of Income
    2. If yes then how taxes shall be computed and penalties.
    Read more on : under exempted trust 270a penalty



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