Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (1) TMI 86 - AT - Income TaxExemption u/s 11 - application in form No. 10A seeking registration u/s 12AA was pending before the CIT(E) - Addition of corpus fund receipts/donations as income - HELD THAT:- On the assets side of the balance sheet, we find that the assessee has invested in different assets and from the fixed assets, the assessee has charged depreciation in the P&L Account. If the corpus has been received by the assessee for a designated purpose, the same should have utilized for that purpose only and if depreciation is charged, depreciation should be reduced from the corpus fund as well as from the fixed assets. Whereas the assessee has reduced from the current year’s receipts as per the P&L Account submitted at page 4 of paper book. Since the society is not registered u/s 12A/12AA of the Act, in our considered view, the AO/CPC has right in making the addition treating the corpus fund receipts/donations as income and the CIT(A) has confirmed the same by analyzing the issue elaborately. Therefore, we uphold the order of the CIT(A) and dismiss the grounds raised by the assessee on this issue.
|