expenses by charitable society later on found bogus expense, Income Tax

[sm surana]

As per investigation it was found that some of the expenses claimed, by the charitable society as application of income,were not genuine. What is the fallout ? whether it will be reduced from the amount applied or will be added to income ? please guide and also quote the relevant court cases and section of the act also . thanks

Posts / Replies

[DR.MARIAPPAN GOVINDARAJAN]

It will be added to the income. If the amount is considerably large, reopening of assessment is possible.