9911796707
TMI Blog2024 (6) TMI 1344X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 expenses being incurred for the purposes of the educational activities of the assessee. It was submitted by ld. Counsel for the assessee that the auditors had given a general remarks about non availability of evidences in support of the expenses incurred. The ld. Counsel for the assessee had submitted that the assessee has filed paper book containing 15 pages in which audited accounts with auditors report is placed. Also assessee submitted that the expenses incurred included salaries to the tune of Rs. 26,53,200/- which is paid to staff who is engaged by the educational institution run by the assessee for educational activities such as faculty members, administrative staff etc, and there are other expenses such as seminar expenses, uniform expenses , communication expenses , vehicle expenses, postage expenses etc. which were also incurred for educational activities of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rn 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(23C)(iv) or 10(23C)(v) or 10(23C)(vi) or 10(23C)(via). Claim of exemption has been made in Sl. No. 4i to 4viii of Schedule Part B TI. These fields are applicable for claim of exemption under section 11 or 10(23C)(iv) or 10(23C)(v) or 10(23C)(vi) or 10(23C)(via). Hence exemption is not allowable. As per details furnished in the return assessee has mentioned status as AOP/BOI. For the sub status selected by the assessee, assessee is liable to tax at Maximum Marginal Rate as per section 167B (For persons registered under section 12A details entered in Schedule Part A General Personal Info is considered and slab rates are applied). 3.1 Vide intimation dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowing 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 Gross receipts of Rs. 67,97,457/- which is below Rs.1,00,00,000/- and therefore is eligible to claim deduction u/s 10(23C)(iiiad). The appellant further submitted that even without registration u/s.12A, only the net taxable income computed after allowing the claim of expenses is to be taxed and not the entire gross receipts as held by the Hon'ble Delhi High court in the case of Petroleum sports promotion board (supra). Accordingly, the appellant contended that the action of the AO of making the disallowance of the entire expenditure claimed by it of Rs.65,93,431/-, is not correct. 5.4 The contentions of the appellant have been duly considered. It is noted that the Tax Auditor had adversely remarke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nds 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 ground that the assessee is not having proper vouchers and assessee is only having self-made vouchers as reported adversely by Auditors in the Audit Report , and the additions were confirmed to the tune of Rs.65,93,431/- by ld. CIT(A). It was submitted by ld. Counsel for the assessee that the auditors had given a general remarks about non availability of evidences in support of the expenses incurred. The ld. Counsel for the assessee submitted that the assessee has filed paper book containing 15 pages in which audited accounts with auditors report is placed. The said paper book is placed on record in file. The ld. Counsel for the assessee submitted that the expenses incurred included salaries to the tune of Rs. 26,5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wed 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 expenses being incurred for the purposes of the educational activities of the assessee. It was submitted by ld. Counsel for the assessee that the auditors had given a general remarks about non availability of evidences in support of the expenses incurred. The ld. Counsel for the assessee had submitted that the assessee has filed paper book containing 15 pages in which audited accounts with auditors report is placed. The said paper book is placed on record in file. The ld. Counsel for the assessee submitted that the expenses incurred included salaries to the tune of Rs. 26,53,200/- which is paid to staff who is engaged by the educational institution run by the assessee for educational activities such as faculty ..... X X X X Extracts X X X X X X X X Extracts X X X X
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