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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 ..... ioner of Income-tax (Appeals) is arbitrary, contradictory to the facts and circumstances of the case and without application of mind. 2. The learned Commissioner of Income-tax (Appeals) erred in holding that no deduction of expenditure was claimed. The claim of expenditure is apparent from the return of income where only the net 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 h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imum marginal rate of tax without allowing expenditure as the trust was not registered u/s. 12AA of the Act. 4. Being aggrieved by the above intimation, assessee filed petition u/s. 154 of the Act for rectification to be undertaken by allowing the expenditure incurred to earn income which was rejected by the Assessing Officer. 5. Being aggrieved, 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 Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Madhya Pradesh High Court in the case of Kaluram Ganeshram (HUF) vs. CIT, (1988) 172 ITR 154. Therefore in the present case, when the Assessing Officer considered the gross receipts as income, he should also have considered 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 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 fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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