Resolution on Filling of ITR 7 - Trust

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A trust has received a notice from the tax department regarding inconsistencies in their ITR 7 filing for FY 2017-18. The issues include discrepancies in Schedule ER and the denial of exemption claims due to late filing of Form 9A and Form 10B. The trust has filed a condonation of delay and is seeking advice on whether to amend the ITR 7 or await the department's response.

Deepak Bhagtani

Deepak Bhagtani (Querist)
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09 January 2020 Dear Expert,

We have received the notice from the department stating following Points -
1. In schedule ER, amount entered in Sr.no.
19 [Total] is inconsistent with the sum of
Sr no (1 to 18) of Schedule ER.
2. In Schedule Part-BTI Assessee has
claimed exemption in sr no 4v “Amount
deemed to have been applied to charitable
or religious purposes in India during the
previous year as per clause (2) of
Explanation to section 11(1)”. As per
Rule-17 of Income Tax Rules, the
exemption is allowed only if assessee has
exercised his option by E-filing Form-9A
before due date. Since assessee has not
E-fiiled Form-9A before due date, the
exemption claimed in sr no 4v is not
allowed.
3. As per section 12A(1)(ba) Income Tax Act,
1961 the person in receipt of the income
has furnished the return of income for the
previous year in accordance with the
provisions of sub-section (4A) of section
139, within the time allowed under that
section. otherwise The exemption u/s-11
i.e. sr.no 4i and 4viii in schedule Part BTI
is not allowed

Can you Please guide, This notice is for FY 2017-18. Also there has been a delay in filling of ITR and 9A

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 January 2020 As there is delay in filing ITR and 9A exemption claimed is denied.

Deepak Bhagtani

Deepak Bhagtani (Querist)
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02 February 2020 I have filed a condonation of delay in filing of form 10B and 9A with Department.
Should I File ITR 7 by rectifying it or wait for the department to respond.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 February 2020 Wait for the department to respond.

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