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2014 (2) TMI 317 - AT - Income TaxWaiver of principal amount of loan - Held that:- Assessee is treated as trust AND has been registered under section 12A and also nature of activity is charitable activity - The computation of income has to follow the provisions of sections 11 and 12 and not Chapter IV-D pertaining to 'profits and gains of business or profession' - The waiver of the loan cannot be treated as income as the assessee has not claimed any deduction earlier on the loan amount, which is on capital account - Decided against Revenue. Validity of deficit shown by the assessee - Held that:- The appellant is entitled for exemption under section 11(1)(a) - The deficit returned by the appellant is valid, which may be modified subject to the decisions of the undersigned on various additions made by the A.O - If the modified position is also deficit, in that case, the appellant is not entitled for carry forward of such deficit as there is no such scheme in any of the sections like section 10, section 11, section 12, section 13 etc., the sections applicable to the activities of the appellant - It is the duty of the A.O. to correctly compute the deductions allowance etc., under the Income Tax Act - The AO was directed to compute the correct income of the trust - Decided against Revenue.
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