9911796707
TMI Blog2023 (8) TMI 1627X X X X Extracts X X X X X X X X Extracts X X X X ..... diture". In addition, there is "Amount transferred to Reserve or Specific Funds". The assessee has claimed deduction for various expenses. It goes without saying that income tax is charged on the income and not the gross receipts. Income is determined by reducing the expenses incurred, described under various sections in Chapter IV-D of the Act. If the benefit of exemption u/s.11 is not available ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Faceless Appeal Centre (NFAC) u/s. 250 of the Income-tax Act, 1961 (hereinafter also called 'the Act') in relation to the assessment year 2018-19. 2. Briefly stated, the facts of the case are that the assessee e-filed its return declaring total income at Nil. The return was processed u/s. 143(1) by observing that the assessee did not file audit report in Form No. 10B, which was a condition pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he specified date and the said Audit report in Form No. 10B should be furnished before the stipulated date. This is how the assessee's appeal came to be dismissed. Aggrieved thereby, the assessee has come up in appeal before the Tribunal. 3. We have heard the rival submissions and gone through the relevant material on record. The contentions about the late filing of Audit report in Form No. 10B a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... through the Income and Expenditure account of the assessee, whose copy has been placed at page 18 of the paper book. Total of gross receipts on the Income side comes to Rs. 4,31,18,955/-, which has been correctly considered by the AO. However, the amount of total deductions, as taken note of by the AO at Rs. 4.95 crore, is not borne out from the Expenditure side. It appears that the AO took the am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere the AO has charged tax on gross receipts, we cannot countenance the same. The resultant impugned order also deserves to be set aside. We order accordingly and remit the matter to the file of the AO for deducing the total income in accordance with the law after considering the deductibility of various expenses noted in the Income and Expenditure Account. Needless to say, the assessee will be al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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