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2015 (4) TMI 1358 - AT - Income TaxExpenses claimed or not incurred for earning exempt income - Amount received from Bharat Lok Shiksha Parishad - AO found the assessee is not a University or other Educational Institution and has also not claimed any Exemption u/s 10(23C) - AO found the expenses claimed in the financial statement are unconnected to the said receipt received from the Bharat Lok Shiksha Parishad, New Delhi - assessment has to be completed treating the assessee like any other business entity - HELD THAT:- We find that there is no dispute of the receipt of a sum from Bharat Lok Shiksha Parishad, New Delhi. However, the expenditure incurred by the assessee is required to be examined with evidences. There is no clarity in the orders of the revenue about the business connections of the assessee Bharat Lok Shiksha Parishad, New Delhi. AO is required to examine the expenditure treating the assessee as independent business entity. The assessee is required to earn income and incur the expenditure like any business entity. This is the claim of the assessee that the expenditure incurred by the assessee should be construed on business expenses. In our opinion, the matter should be remanded to the file of the AO for fresh adjudication of the issue after giving an opportunity of being heard to the assessee. Assessee should demonstrate that expenditure in incurred for business of the assessee only. Accordingly, the grounds raised by the assessee is allowed for statistical purposes.
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