TMI Blog2013 (7) TMI 976X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal order passed by the learned CIT(A) are against the law and facts applicable in the case of the appellant. (2) That the learned AO has erred in disallowing part of the expenses without applying the provisions of s. 145(3). Learned CIT(A) has further erred in confirming the order of the AO. Without rejecting the books of accounts no disallowance can be made. The act of the learned AO as well as the learned CIT(A) is against the direction of the Hon'ble Supreme Court in CIT us. Padamchand Ramgopal (1970) 76 ITR 719 (SC) and against the jurisdictional High Court of Rajasthan in CIT vs. Maharaja Shree Umed Mills Ltd. (1991) 96 CTR (Raj) 72 : (1991) 192 ITR 565 (Raj). The orders passed by the learned AO as well as by the learned C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in disallowing ₹ 15,00,000 out of the salary claimed by the assessee. The disallowance was made on the plea that the employees are more in comparison to the students in the college run by the assessee trust. The employees were as per the directions/guidelines of the Dental Council of India, the governing body appointed by State Government. Learned CIT(A) has further erred in confirming the order of the AO. The orders passed without considering the facts and evidences filed by the assessee are bad in law and may please be cancelled. (7) That the learned AO has erred in making a disallowance of ₹ 24,000 on account of bad debt claimed by the assessee and the learned CIT(A) has further erred in confirming the disallowance. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... render College of Physiotherapy and Surender College of Advanced Studies. The main activity of the assessee trust is running the dental college and allied services. The assessee is maintaining the separate set of books of account for all the three colleges and one set for the trust. The assessee trust has obtained the registration under s. 12A of the IT Act, 1961, and the registration was granted from 7th April, 1999 vide order dt. 29th June, 1999 under registration No. 124/9 by the CIT, Bikaner. Similarly, the assessee has also obtained the approval of the Chief CIT, Jodhpur, as required as per s. 10(23C)(vi). The approval was granted vide Notification No. 3 of 2010-11 dt. 23rd Sept., 2010 from asst. yr. 2009-10. Upto the date of audit of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st, therefore, the AO was not justified in framing assessment as per provisions of Chapter V. As per learned Authorized Representative, the assessment of registered trust is required to be completed under Chapter III. For this purpose, reliance was placed on the decision of Hon'ble Rajasthan High Court in the case of Shri Ram Jhanwar Lai vs. ITO and Ors. (2008) 10 DTR (Raj) 229 : (2009) 177 Taxman 135 (Raj). Our attention was also invited to assessment framed for asst. yr. 2009-10 wherein AO himself has accepted the status and framed assessments under Chapter III and benefit of ss. 11 and 13 was granted. Reliance was also placed on the decision of Hon'ble Supreme Court in the case of Thanthi Trust order dt. 31st Jan., 2001, finding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not entitled to the exemption contained in s. 11 in respect of the income of its newspaper. 6. In view of the above, it was contended that for taxing the trust provisions of ss. 11 and 13 have to be considered. On the merits also, contention of learned Authorized Representative was that no disallowance of expenditure genuinely incurred for the purpose of trust, was warranted. 7. On the other hand, the learned Departmental Representative relied on the orders of lower authorities. 8. We have considered the rival submissions and have gone through the orders of the authorities below. We had also deliberated on the judicial pronouncements cited by the learned Authorized Representative as well as decisions relied upon by the lower au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wance of expenditure was arbitrarily made by the AO when it was categorically brought on record that the expenditure were incurred wholly and exclusively for the purpose of trust. The expenditure incurred on foreign travelling by the doctors were as per the terms of employment and the visits were undertaken relating to work of the trust. Doctors have also undertaken foreign travelling for undertaking advance courses and documentary evidences were duly filed before the lower authorities. Disallowance of telephone expenses of ₹ 7,306 was not warranted insofar as telephones were exclusively used for the purpose of trust and there was no personal use of telephone by the trustees. It is also not the case of the lower authorities that any p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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