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TMI Blog2013 (10) TMI 1500X X X X Extracts X X X X X X X X Extracts X X X X ..... acts and circumstances of the case, 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 whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come. During the course of assessment 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g 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 as the Case may be by permitted option) y (v) Accumulation of income for specified purpose (permitted for 5 years by filing of Form 10) Y1 --------------- Total income (X1-Y1) A similar issue arose in Normal Agricultural Society vs. ITO(1999) 71 ITD 152 (Hyd 'B' Bench). The assesse was a registered society formed for undertaking charitable activities among agriculturists. The assessee had not applied for registration u/s.12A in time. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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. ITO (supra) that it is only net income, which can be added even if the assessee trust is not entitled for relief specified under section 11 & 13 of the Act. In our opinion, the findings given by ld CIT(A) are duly supported by the decision of Coordinate Bench in the case of Nirmal Agricultural Society vs. ITO (supra). Therefore, following the said decision, we do not find any infirmity in the order of ld CIT(A) to interfere. We, therefore, uphold the impugned order. 7. The assessee has filed cross objection, which is delayed by 60 days. Assessee has filed application praying for condonation of d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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