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2019 (3) TMI 1572 - AT - Income TaxAssessment of trust - Addition of accumulation of income @ 15% of the gross total income - HELD THAT:- We find that the assessee has already applied its income for the various charitable activities over and above the gross total income earned for the year and for that purpose, aggregated computation of income has been furnished by the written submissions dated 11.03.2013, but the same were not considered by the AO which is not permissible in law. Since, the assessee has already applied its income, therefore no question arises of claiming 15% of deduction or making disallowance of it by the AO. We hold that CIT(A) has perfectly deleted the said addition, therefore this ground of appeal is dismissed. Disallowance of amount set apart for specified purposes and disallowance of expenditure - assessee had set apart or accumulated the amount u/s.11(2) - assessee had filed Form No.10 along with resolution for accumulation of income along with Return of Income filed u/s.139(1) - HELD THAT:- Amount eceived by the assessee Trust towards corpus fund created for the specific purposes, hence, such donation receipts towards corpus fund are to be treated as capital receipts of the Trust and on such donations the provisions of section 11(2) granting exemption to the amount accumulated would not apply. All such funds have been deposited by it has fixed deposit in the bank account and only interest part of it, which has been shown as regular income, has been applied or spent towards various purposes. Therefore, the CIT(A) has rightly deleted such addition made by AO, accordingly ground no.ii) & iii) of the appeal is therefore dismissed. With regard to expenditure we find that these expenditures were incurred out of its income accumulated from year to year and not from earmarked corpus fund the assessee has duly demonstrated by showing the details of the balance sheet of the current year as well as earlier years that no amount has been spend out of the corpus fund received in various years - Decided against revenue
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