Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 1842 - AT - Income TaxAscertaining the taxable income of the assessee in absence of registration u/s.12A - Revenue taxing the entire amount of receipts without allowing claim of expenditure - determining the income by not giving the credit of the application of funds for charitable purposes - HELD THAT:- In view the principles laid down by the Hyderabad Benches of the Tribunal in the case of Nirmal Agricultural Society [1998 (12) TMI 106 - ITAT HYDERABAD-B] no hesitation to hold that even in absence of registration u/s.12A of the Act, the Assessing Officer could assess only net income of the assessee and not the entire receipts because in absence of registration u/s.12A the assessee should be assessed in the capacity of AOP on the commercial principles, wherein, the total gross receipts/income cannot be treated as income of the assessee without allowing revenue expenditure incurred by the assessee during the relevant same period and thus, I am inclined to hold that the authorities below were not right in disallowing the claim of expenditure of the assessee. However, AO has framed assessment u/s.143(1) without verifying the quantum of expenditure claimed by the assessee and the CIT(A) has not verified the same during the relevant appellate proceedings. Therefore, direct the Assessing Officer to allow the claim of expenditure of the assessee pertaining to the relevant financial period after due verification of purpose and quantum of expenditure. Hence, the case is restored to the file of the Jurisdictional Assessing Officer - Decided in favour of assessee for statistical purposes.
|