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2022 (9) TMI 788 - AT - Income Tax


Issues:
1. Appeal against order dated 13.02.2019 under section 143(3) of the Income Tax Act, 1961 for Assessment Year 2014-15.
2. Disallowance of advance payment and gold purchase by the Assessee trust.
3. Disallowance of expenses incurred for charitable objects.
4. Appeal filed by the Revenue against the order of the Ld. CIT(A).

Issue 1:
The appeal was filed by the Revenue against the order dated 13.02.2019 under section 143(3) of the Income Tax Act, 1961 for Assessment Year 2014-15. The case involved a charitable trust engaged in educational activities. The Assessing Officer found discrepancies in the balance sheet related to an advance payment to a company and the purchase of gold, leading to a show cause notice being issued to the Assessee trust.

Issue 2:
Regarding the disallowance of the advance payment and gold purchase, the Assessee trust explained that the advance was for construction work and the gold was purchased for awarding medals to students, aligning with the trust's educational objectives. The Ld. CIT(A) held that these expenses were not investments but were for the trust's objectives, hence not in violation of Section 11(5) of the Act. The Revenue challenged this decision, but the Tribunal upheld the Ld. CIT(A)'s findings, dismissing the appeal.

Issue 3:
Concerning the disallowance of expenses incurred for charitable objects, the Assessee trust provided evidence of payments made to contractors and donations to various institutions, all in line with the trust's objectives. The Ld. CIT(A) accepted these explanations, stating that the expenses were for the trust's projects and charitable purposes, eligible for deduction under Section 11 of the Act. The Tribunal found no merit in the Revenue's arguments and dismissed the appeal.

Issue 4:
The Revenue's appeal against the Ld. CIT(A)'s order was based on various grounds, including alleged violations of Section 11(5) and objections to the allowance of exemptions. However, the Tribunal reviewed the facts, supporting documents, and responses from both sides. It concluded that the Ld. CIT(A)'s findings were based on factual evidence and did not require interference. The Tribunal dismissed the Revenue's appeal, upholding the Ld. CIT(A)'s order.

This detailed analysis of the legal judgment highlights the key issues, arguments presented, decisions made by the authorities, and the final outcome of the appeal before the Tribunal.

 

 

 

 

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