expenses by charitable society later on found bogus expense

[sm surana]

As per investigation it was found that some of the expenses claimed, by the charitable society as application of income,were not genuine. What is the fallout ? whether it will be reduced from the amount applied or will be added to income ? please guide and also quote the relevant court cases and section of the act also . thanks

AI Summary

Charitable Society's False Expense Claims to be Added to Income; Significant Amounts May Reopen Assessment. A charitable society was investigated, revealing that some expenses claimed as application of income were not genuine. The query raised concerns about the consequences of these findings, specifically whether the bogus expenses would be deducted from the applied amount or added to the income. The response indicated that such expenses would be added to the income. Additionally, if the amount is significant, there is a possibility of reopening the assessment.