9911796707
TMI Blog2024 (6) TMI 1344X X X X Extracts X X X X X X X X Extracts X X X X ..... The intimation passed by assessing officer u/s. 143(1) of I.T. Act is bad in law and deserves to be uncalled for. Tax effect relating to each Ground of appeal (see note below) - 2. The assessing officer has erred in law and on facts in not allowing the deduction of expenditure incurred by the appellant towards the education purpose amounting to Rs. 67,97,457/-. 31,12,880/- 3. The appellant craves to reserve his right to add, alter, amend, or delete any ground of appeal during the course of hearing. Total Tax effect (see note below)" 31,12,880/ 3. The brief facts of the case are that the assessee has filed its return of income for AY 2019-20 on 22.07.2020, wherein the assessee declared income of Rs.NIL after claiming exemption u/s.11 of the I.T. Act, 1961. The said return was processed by Revenue u/s.143(1) of the Act vide orders dated 25.09.2020, and the exemption u/s.11 of the Act as claimed by the assessee was denied by Revenue on the grounds that the assessee was not holding registration u/s.12A/12AA of the 1961 Act by holding as under: "As per the details furnished in the return, Assessee is not registered u/s 12A/12AA or approved u/s 10(23 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f appeal, Statement of facts as per Form No. 35 as well as the written submission of the appellant. 5.1 All the Grounds of appeal as well as the additional Ground of appeal relates to the sole issue of disallowance made by the AO while processing the return of an amount of Rs.65,93,431/- being the application of income for the objects of the Trust u/s 11. 5.2 As observed earlier, the assessee Trust which is engaged in running an educational institution filed it's return of income on 22.07.2020 declaring Gross receipts of Rs.67,97,457/- and expenditure of Rs.65,93,431/- for the objects of the Trust. The return filed was processed vide intimation u/s 143(1) of the Act on 25.09.2020 after disallowing the entire claim for expenditure made by the assessee Trust u/s 11 of Rs.65,93,431/- being the application of income for the objects of the Trust u/s 11. Accordingly the taxable income of the assessee was computed at Rs.67,97,457/- by the AO. 5.3 In course of the appellate proceedings, the appellant submitted that it is eligible for claiming exemption u/s 10(23C)(iiiad) but inadvertently it had claimed exemption u/s 11 in the return filed. It was further submitted that it has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 251 of the Act." 5. Aggrieved by appellate order passed by ld. CIT(A), the assessee filed its second appeal before the Tribunal. The ld.counsel for the assessee, at the outset, submitted that the assessee has filed its return of income with Revenue inadvertently claiming exemption u/s.11 of the Act , while the assessee is eligible for deduction u/s.10(23C)(iiiad) on the ground that assessee's turnover is less than Rs.1 Crore and assessee is engaged in the educational activities as it is running an educational institution. The ld.counsel for the assessee submitted that the CPC Bengaluru while processing assessee's return of income has disallowed the claim of the assessee-trust for exemption u/s 11 on the grounds that it is not holding registration u/s.12A/12AA of the Act or approval u/s 10(23C)(iv), 10(23C)(v),10(23C)(vi) or 10(23C)(via). It was further submitted by assessee before Ld.CIT(A), that the assessee is eligible for deduction u/s.10(23C)(iiiad) of the Act on the ground that assessee is engaged in educational activities as it is running educational institution and the turnover is less than Rs. 1.0 crores, but Ld.CIT(A) confirmed the addition of Rs.65,93,431/- on the grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act, but however, it was claimed that since the turnover of the assessee is less than Rs.1 Crore and the assessee is engaged in the educational activities by running Educational Institution, the assessee is eligible for deduction u/s.10(23C)(iiiad) of the Act. The Ld.CIT(A) observed that the assessee has claimed expenses for which no proper evidences are available and claim of deduction of the expenses have been made merely on the basis of self-made vouchers , as was adversely reported by the auditors in their audit report by way of adverse comment/remarks about the claim of deduction of expenditure based on self made vouchers instead of evidence in support of expenses, and based on that Ld.CIT(A) disallowed the claim of deduction of expenses of Rs.65,93,431/- as the genuineness of these expenses could not be proved by the assessee. The ld.counsel for the assesse had submitted before us that one more opportunity be provided to the assessee , and the assessee will produce all the relevant documents/evidences to prove that the assessee is genuinely engaged in the educational activities of running of the educational institution and holding the necessary evidences to support the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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