Expenses incurred for object disallowed, Income Tax

[GOPAL HARLALKA]

Assessee is a trust registered under soceities Registeration Act. However it is not registered u/s 12A of the Income Tax Act.

Total receipt during the year is. ₹ 31,39,726.

Expenditure incurred for the

object of the trust ₹ 26,51,438/-

Surplus of income over expenditure is ₹ 4,88,288 Tax has been paid on ₹ 4,.88,288/-

Return has been filed in form No.7

CPS has has disallowed expenses for ₹ 26,51,438.- and computed tax on entire receipt

of Rs, 31,31,726/- Rectification u/s 154 was filed but again tax been computed on entire receipt.

Please suggest the action to be taken for determination of correct income

In subsequent and earlier year return has been filed in form no. 5 and income has been

computed correctly

Posts / Replies

[Nandan Khambete]

For claiming exemption u/s 11 or 12, Registration u/s 12A is a must