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TMI Blog2024 (8) TMI 747X X X X Extracts X X X X X X X X Extracts X X X X ..... ss the income of the appellant/assessee under the head Income from Other Sources in accordance with the provisions of Sections 56 and 57 of the Act. Therefore, the revenue expenditure incurred exclusively to earn income along with the depreciation on assets has to be allowed as expenditure in accordance with the provisions of Section 57. Thus, the AO is directed to allow all expenses/deductions in accordance with the provisions of Section 57 against the receipts taxable under section 56 of the Act. Accordingly, we order so. The matter is therefore, restored back to the AO for doing needful as above. Appeal of assessee is allowed for statistical purposes. - Ms. Madhumita Roy, Judicial Member And Shri Avdhesh Kumar Mishra, Accountant Member ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the appellant/assessee was processed, by the Assessing Officer (CPC-ITR) [In short, the AO ], under section 143(1) of the Act on 27.03.2017. The AO disallowed entire expenses claimed in the Income Expenditure Account annexed/mentioned in the ITR on the reasoning that the appellant/assessee was not entitled for claiming deduction under section 11 of the Act as it was not a registered trust under section 12AA of the Act. In other words, the entire gross receipts of Rs. 1,04,83,778/- of the appellant/assessee was taxed as an income. Aggrieved, the appellant/assessee filed appeal before the First Appellate Authority. The Ld. JCIT(A) dismissed the appeal vide order dated 30.03.2024 on the reasoning that the assessee was not entitled for claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e provisions of Section 56 read with Section 57 of the Act. The ITR filed by the appellant/assessee in Form No. 7 in absence of the proof of registration as trust under section 12AA of the Act has been treated as a valid ITR and that is why the same was processed under section 143(1) of the Act. Here in this case, instead of taxing income imbedded in the gross receipts, the entire receipts have been taxed as income. Keeping in view the facts in entirety, we are of the considered opinion that the disallowance of entire expenses in processing under section 143(1) of the Act is not only against the accounting principle but also against the provisions of the Act. The impugned order of the JCIT(A), in para 6.4 of the order, has categorically hel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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