9911796707
TMI Blog2013 (4) TMI 418X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of section 11 of the Act are not applicable for which the A.O. has determined the status as AOP and also taxed the gross receipts of the assessee under the head "Income from Other Sources" and due to failure on its part to produce the details of books c account/Bills and Vouchers to substantiate the genuineness of expenditure claimed. 02. Whether the Ld.CIT(A) is justified to hold that various expenses claimed in Receipt and Expenditure accounts have to be excluded from Gross Receipt under situation where the expenses claimed cannot be considered as wholly and exclusively laid out for earning the gross receipt which are mostly voluntary Contributions and Grant as such the expenses can only be treated as application of income no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of accounts and also keeping the supporting documents for the same as well as its books of accounts has been audited by the Chartered Accountant. The Assessee has furnished the books of accounts and supporting documents for verification at the time of Assessment proceeding but learned Assessing Officer has taken the gross donation and hundi collection as taxable income. On appeal, the learned CIT(A) directed the Assessing Officer to bring to tax the net income in place of donation and hundi collection. 3. The learned DR initiated his arguments by submitting that the learned CIT(A) ought not to have allowed the claim of the assessee by holding view that only Net Profit will only to be brought to tax when the assessee is not patently regis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as brought on record by the authorities below, we are inclined to hold that the assessee has not preferred registration u/s.12A for the impugned Assessment Year and was therefore considered by the learned CIT(A) that the activities carried out by the assessee whether charitable or not were to be allowed expenditure on the basis of nature of expenditure claimed as per the financial statements produced before the authorities below. It was not the case of the learned CIT(A) to grant exemption u/s.11 insofar as the assessee had not been granted registration u/s.12A. But the learned CIT(A) in his turn had considered the total receipts which were not part of the business income directing the Assessing Officer to allow the expenses carried out by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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