TMI Blog2020 (11) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... in limine. We accept the plea of the assessee and assessee shall file e-appeal before the Ld. CIT(A) and intervening period of delay is condoned and Ld. CIT(A) is directed to decide assessee's appeal on merit. Appeal filed by the Assessee is allowed. - ITA No. 1841/AHD/2017 - - - Dated:- 21-9-2020 - Mahavir Prasad, Member (J) And Waseem Ahmed, Member (A) For the Respondents : Dileep Kumar, Sr. D.R. ORDER Mahavir Prasad, Member (J) 1. This appeal filed by the Assessee is directed against the order of the Ld. CIT(A)-9, Ahmedabad dated 11.05.2017 pertaining to A.Y. 2013-14 and following grounds have been taken: 1. The learned CIT-(A)-9, assessing officer has erred in making addition of ₹ 17,83,549/- on a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng. 5. To stay the demand till the disposal of Income Tax appellate Tribunal Ahmedabad Benches, Ahmedabad. 2. In this case, assessee is AOP (Trust) carrying on various religious and charitable activities. 3. Perusal of the income and Expenditure account and computation of income it reveals that the assessee trust has shown income under the head Income from other sources . The detail of source of income is as under: 1 Administrative Exp.(As per Annexure-3, income expenditure account) ₹ 2,70,380/- 2 Donation ₹ 16,626/- 3 For the object of the trust. (As per Annexur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e computing income from other sources . From the table shown above, none of the expenditure is laid out or expended wholly or exclusively for the purpose of making or earning the income tabulated above. These expenditure cannot be stated to be expended wholly and exclusively for the purpose of earning income from Other Source . Reliance is places on the decision of Jurisdictional High Court in the case of Smt. Virmati Ramkrishanna's case (1981) 131 ITR 659 (Guj), it has been held that the purpose of making or earning income must be the sole purpose for which the expenditure must have been incurred, that is to say, the expenditure should not have been incurred for such purpose as also for another purpose, or for a mixed purpose. It has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act, is added to the total income of the assessee. Penalty proceedings u/s. 271(1)(c) of the IT Act are separately initiated for furnishing inaccurate particulars of income. (Addition of ₹ 50,53,755/-) 8. Without prejudice to the above, perusal of the balance sheet reveals that assessee itself had shown the receipts of donation of ₹ 50,53,755/- as Voluntary contributions in the Annex-A of Other established funds . Thus, the assessee, too have accepted the fact that these donations are not corpus donations, in fact it is general donation which should have been routed through Income and expenditure account for the year under consideration. Which the assessee had not done so. 9. And Ld. A.O. made addition of ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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