TMI Blog2013 (10) TMI 1500X X X X Extracts X X X X X X X X Extracts X X X X ..... , ld CIT(A) is not justified in directing the AO to tax the net income instead of gross receipt of ₹ 18,74,400/-. As the assessee society was not registered u/s.12A of the I.T.Act, 1961, the provisions of section 11 of the Act are not applicable for which the AO has determined the status as AOP and also taxed the gross receipts of the assessee under the head income from other sources and due to failure on its part to produce the details of books of account/bills and vouchers to substantiate the genuineness of expenditure claimed. 2. Whether the ld CIT(A) is justified to hold that various expenses claimed in receipt and expenditure accounts have to be excluded from gross receipt under situation where the expenses claimed cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment proceedings, assessee has claimed that entire donation received by the assessee trust under the mandate of donation for assets , hence same could not be considered as income. It was stated that some of the income was utilized for incurring expenses and some of the money were utilized for purchase of assets. Therefore, assessee submitted that assessee is not entitled for registration under section 12A of the Act but assessee is entitled for claiming expenses. Therefore, total donation received by the assessee cannot be considered as income of the trust. The Assessing Officer did not consider the above contentions of the assessee as tenable in the eye of law and assessed the entire donation received of the trust as income of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther than corpus and Specific-fund donations where income is to be utilized) ___________ X Less : Establishment expenses (including depreciation) E Net Income X1 Less-Deduction u/s.11 (i) Accumulation @ 15% (on the gross income) (ii) Application of income for charitable objects y (iii) Application of income for creation of new capital assets y (iv) Deemed application of income y (required and/or spend in next year a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ust is not granted registration under section 12A of the Act and when assessee trust is not registered, the entire donation received by the assessee trust is the income of the assessee and, therefore, assessee trust is entitled for any deduction in respect of expenditure and also assessee cannot incur any capital expenditure. He submitted that entire donation received by the assessee has to be assessed as income of the trust. 6. We have heard of ld D.R. and perused the orders of authorities below. The only issue involved in this case whether gross donation of ₹ 18,74,400/- has to be added or net income has to be added. We noted that ld CIT(A) has clearly held on the basis of decision in the case of Normal Agricultural Society vs. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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