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TMI Blog2019 (11) TMI 1839X X X X Extracts X X X X X X X X Extracts X X X X ..... d the expenditure claimed to be incurred in connection with earning of gross receipts. In the event, he feels that it requires verification whether or not, the expenditure was incurred for earning gross receipts then the only option available to the AO is to convert the case into scrutiny assessment. AO cannot ignore the information contained in other part of return of income which is against him. The taxing authorities exercise quasi-judicial powers and in doing so they must act in a fair and not a partisan manner. Although it is part of their duty to ensure that no tax which is legitimately due from the assessee should remain unrecovered, they must also at the same time not act in a manner as might indicate that scales are weighted agains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... receipts of Rs. 3,56,850 (being gross receipts of Rs. 2,04,19,678 less expenditure of Rs. 2,00,62,828) was admitted as total income. 3. The learned Commissioner of Income-tax (Appeals) erred in not allowing the deduction of expenditure incurred wholly and exclusively for running the school. 4. The learned Commissioner of Income-tax (Appeals) has co-terminus powers as that of assessing officer and thus should have considering the effect of first proviso to sub-section 2 of section 12A of the Income Tax Act, 1961. 5. Even assuming that the benefit of sections 11 and 12 are not available for AY 2015-16, the character of the amount claimed as applied for charitable purpose changes into that of expenditure. Therefore, what can be taxed is only t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved, an appeal was preferred before the ld. CIT(A), who vide impugned order confirmed the action of the Assessing Officer (AO). 6. Being aggrieved by the order of the CIT(A), the appellant is in appeal before us in the present appeal. It is submitted before us that the Assessing Officer ought to have considered the expenditure incurred wholly and exclusively to earn the income and the Assessing Officer cannot consider only information which is convenient to him in the return of income and ignoring the information containing in the return of income which is against the Revenue. On any event, he submitted that the action of the Assessing Officer is outside the domain of Section 143(1) of the Act. 7. On the other hand, the ld. Sr. Departmental ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s verification whether or not, the expenditure was incurred for earning gross receipts then the only option available to the Assessing Officer is to convert the case into scrutiny assessment. The Assessing Officer cannot ignore the information contained in other part of return of income which is against him. The taxing authorities exercise quasi-judicial powers and in doing so they must act in a fair and not a partisan manner. Although it is part of their duty to ensure that no tax which is legitimately due from the assessee should remain unrecovered, they must also at the same time not act in a manner as might indicate that scales are weighted against the assessee. It is impossible to subscribe to the view that unless those authorities exe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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