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2023 (9) TMI 540 - ITAT JAIPURAddition made for surplus for both funds of students - As submitted both the schools are run by the Trust only but the appellant has not taken into account surplus of both these schools into account while consolidating the total accounts of the Trust - HELD THAT:- During the course of assessment proceedings the AO made the addition by observing that the assessee society neither had taken the income/ the expenditure of the funds nor did it take the surplus so generated of both funds while computing the surplus of the society in consolidation. Thus a sum being surplus of both funds was not taken into account while consolidating the total accounts. In first appeal, the CIT(A) has confirmed the addition made by the AO. The Bench has noted the submission of the ld. AR of the assessee and found that the submission made by assessee is appropriate as surplus fund can never by utilized at the discretion of the Management as it is controlled by the Head of the Institution for the welfare of students only. We concur with the submissions of assessee and thus the Ground No. 4 of the assessee is allowed. Disallowance of corpus donation - HELD THAT:- It is noted that assessee during the course of hearing produced the certificates from the donors who confirmed the above payments made to the assessee trust. Taking into consideration confirmation by the donors for above payments, we allow the Ground No. 5 of the assessee. Disallowance of small amount for purchase of Invertor for the use of students of school - HELD THAT:- At the time of hearing, the ld. AR placed details of payment for purchase of Invertor for the welfare of the students of the school. Hence, looking to the fairness of the assessee with regard to payment to the party M/s.Kiran Battery Co. Ajmer, we allow the Ground No.6 of the assessee.
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