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2015 (9) TMI 711 - AT - Income TaxDisallowance of exemption claimed by the assessee u/s 11 - CIT(A) confirmed the disallowance made by the AsO denying exemption u/s 11 as if there was a violation of sec. 13(1)(C) r.w.s 13(3) - Held that:- This Tribunal is of the considered opinion that if the funds were misappropriated and legal actions were initiated to recover the amount from Shri G. George and criminal prosecution is also initiated, then it cannot be said that the assessee-trust incurred expenditure on Shri G. George. Merely because an office bearer is misappropriated the funds in a dubious manner by misusing his position in the trust that cannot go against the assessee especially when legal actions were taken to recover the amount and criminal prosecution is also initiated. Since the facts were not examined by the lower authorities, this Tribunal is of the considered opinion that the matter needs to be re-examined by the Assessing Officer. Accordingly, the orders of the lower authorities are set aside and the entire issue of claim of exemption u/s 11 of the Act is remitted back to the file of the Assessing Officer to examine the material available on record and find out whether it is an expenditure incurred by the assessee on Shri G. George or the funds were misappropriated by Shri G. George as contended by the assessee before this Tribunal. Decided in favour of assessee for statistical purposes.
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