TMI Blog2024 (2) TMI 839X X X X Extracts X X X X X X X X Extracts X X X X ..... We find merit in the submission made on behalf of the assessee trust that disallowance of revenue expenditure would only inflate the surplus income of the assessee trust. Since the surplus income does not exceed 15% of the total receipts of the assessee trust, the same has to be carried forward for subsequent application of this income for charitable purposes. Therefore, no addition is called for. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the assessment was completed by the Assessing Officer (AO) u/sec. 144 of the Act vide order dated 19/12/2018 at an assessed income of Rs. 48,12,32/- by denying exemption on the ground that assessee was not entitled for exemption as the assessee did not have registration under 12A/12AA of the Act. The AO also disallowed 10% of the revenue expenditure as the assessee has failed to prove the genui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such income of Rs. 48,12,232 is less than permitted accumulation limit of 15% u/sec. 11(1)(a) of the ITA, 1961 and as such, the taxable income ought to be worked out at Rs. NIL. As the additional ground goes to the root of the matter and is purely legal in nature, requiring no verification of facts, I admit this additional ground and proceed to adjudicate the same. 5. It is submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rust, the same has to be carried forward for subsequent application of this income for charitable purposes. Therefore, no addition is called for. The additional ground of appeal filed by the assessee stands allowed and the other grounds of appeal are dismissed as infructuous. 8. In the result, appeal of the assessee is partly allowed. Order pronounced in open Court on 15th February, 2024. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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