Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (6) TMI 862 - ITAT VISAKHAPATNAMExemption u/s 11 - denying the benefits of registration u/s 12A - assessee has spent the amount as per the direction of the Director Marketing, thus, the claim of the assessee was allowed - HELD THAT:- From the order of the AO, there is no dispute that the AO had accepted the claim of the assessee with regard to spending the sum and the same was allowed. On perusal of the statement of receipts and payments, it is seen that the total receipts of the assessee for the year under consideration and the total payments and the AO had accepted the claim of the assessee. Thus, the assessee has spent more than the actual receipts, accordingly, it is seen that the AO has not made out a case of violation of provisions of section 11(2). Once it is accepted that the expenditure is allowable against the total receipts of the year for charitable purpose it is established that the assessee has spent more than 85% of the receipts and thus there is no case for making further addition. We set aside the order of the Ld.CIT(A) and delete the addition made by the AO. The appeal of the assessee is allowed.
|