13 January 2020
Dear Sir We are an educational institute and running one English medium and one Hindi medium school. Our gross receipts in total are 26 lacs. and our Exp is 21 Lacs at the time of filing of ITR for A/y 2017-18 in utilization we put 5 lacs and filed the return. In the return it showed a total income of 21 lacs and tax under self-assessment was calculated and the ITR was filed without depositing tax and this point also did not came to our notice. Now the ITO is telling us to launch prosecution against as we have not deposited the self-assessment tax. We are requesting him that we are an eductional institute and claiming exemption u/s 10(23C)(iiiad) as our receipt are below 1 crore.and it is clerical error which has created a liability. I want to know whethe he is right in initating prosecution. can he not treat our return as defective and treat it as invalid on account of non payment of self assessment tax.
CAclubindia
