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2013 (7) TMI 136 - ITAT CHENNAIRe opening of assessment - CIT(A) rejected the status of the assessee as a mutual concern by confirming the addition in respect of the amount transferred to common good fund and disallowing certain expenses - assessee is a society registered under the Societies Registration Act, 1860 - Held that:- The assessee by donating its amounts to Kargil fund, P.M. relief fund, Gujarat relief fund etc. has vitiated the concept of mutuality. Therefore, the assessee cannot be held to be a mutual concern at least for these two assessment years. However, the assessee is entitled for deductions under Chapter VI as the assessee made donation to Kargil fund, PM relief fund and Gujarat relief fund. The Assessing Officer having held that the assessee is not a mutual concern and considered the assessee as an AOP he should have allowed the said donations as deduction under Chapter VI for which the assessee is otherwise entitled to. Since this aspect of the matter was not considered by AO he should be directed to look into this aspect and allow the deduction to the assessee in accordance with law. With regard to the addition made towards common good fund - Held that:- As it is found from the assessment order that the assessee introduced in the liability side of the balance sheet an amount of Rs. 21,21,488/- and Rs. 18,22,720/- as a common good fund and during the assessment years 2000-01 and 2003-04 respectively assessee has not produced any details for the said amounts said to have been received from its members and the assessee has not filed any details correlating the amounts with the names of the members etc., from whom the said fund was received by the assessee, except furnishing xerox copy of a ledger account. Since the assessee association is a District Bus Operators Association is formed for the benefit of the members of the association, in the interest of justice, the assessee be given one more opportunity to furnish the details of common good fund before AO. Disllowance of diesel expenses - Held that:- As assessee did not furnish complete details thus AO's order in estimating the disallowance of these expenses at 10% which is quite reasonable in the absence of complete details - appeals of the assessee partly allowed for statistical purposes.
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