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2020 (4) TMI 424 - AT - Income TaxRectification u/s 154 - CPC disallowed the entire claim of the application of income on the ground that the assessee trust was not registered u/s 12A therefore, entire gross receipts were added back to the returned income of the assessee in the proceedings carried out u/s 143(1) - assessee moved a rectification application u/s 154 pleading that even if the assessee is assessed as an AOP, the assessee may be grated the claim of revenue expenditure which has been claimed as application of income in the return of income. However, the said application was also rejected by the CPC - HELD THAT:- Under similar circumstances, the claim of the expenditure has been allowed by the CPC for the assessment year 2016-17 copy of the assessment order has been placed on record. We find force in the contention of the Ld. Counsel for the assessee that if the assessee has not been treated as a charitable trust, still the income of the assessee is to be assessed as per the normal provisions of the Act and the admissible revenue expenditure is to be allowed against the income of the assessee. In view of this, the impugned order of the CIT(A) is set aside, the matter is restored to the file of the Assessing Officer for deciding it afresh, treating the assessee’s income as an AOP and considering the claim of the assessee of allowability of expenditure which was inadvertently claimed as application of income in the return of income. Appeal of the assessee is treated as allowed for statistical purposes.
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