Notice u/s 139(9) of defective return

This query is : Resolved

Nanu Gupta (Querist)
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04 May 2018 ITR 7 had been filed in case of a charitable trust for FY 2016-17. It is registered u/s 12A and 80G. It was not liable for tax audit for the year under consideration.

Notice u/s 139(9) has been received mentioning error code 92 stating error description:

Assessee has filed return in Form Type 7, and has not
claimed any deduction/exemptions under section 11 or
clauses of Section 10 or Section 13A or Section 13B in
Schedule Part B-TI of the return.

and resolution :

If eligible for benefit of deduction/ exemption under section
11 or clauses of section 10 or section 13A or Section 13B
the same need to be claimed in the return. In case the
assessee is not an institution required to file return under
section 139(4A) or 139(4B) or 139(4C) or 139(4D) or
139(4E) or 139(4F) the return should be filed in prescribed
form i.e ITR 1 to 6 , as applicable.

I am not able to get what deduction/exemption they are asking to claim.

Kindly guide me on the same.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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05 May 2018 In case of institutions registered u/s 12A, the expenses against its receipts should
be for its ' objects viz., generally for charitable purposes. That type of expenditure
can be claimed u/s 11 and should be specifically shown in ITR-7 otherwise the
return may turnout to be defective.

Nanu Gupta

Nanu Gupta (Querist)
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07 May 2018 gross receipts were around 800000 before claiming deduction u/s 11 for FY 2016-17 and audit report form 10B is not filed yet.
Is it necessary to file audit report in form 10B in this case? And if yes can it be uploaded now?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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07 May 2018 Gross receipts is not the criteria .Audit is required if the total income before claiming exemption u/s 11 and 12 exceeds Rs. 2,50,000 in financial year 2016-17,audit report has to be obtained in form 10B.

In reply to 139(9), ITR-7 and 10B can be e-filed.

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