Functional comparability governs software-service benchmarking: dissimilar companies are excluded, while related-party filters, margins and working-ca...
ITAT allowed the appeal for statistical purposes and remanded the matter to CIT(A) for factual verification. The assessee society claimed exemption u/s 11(1)(d), which was denied through intimation u/s 143(1) treating government scheme funds as "income" u/s 2(24). ITAT held that if the society operates as a simpliciter pass-through entity under "Rashtriya Gokul Mission" without control over funds or right to retain unutilized amounts, such funds cannot constitute "income" u/s 2(24). The tribunal directed CIT(A) to verify the factual position regarding the society's role as implementing agency and whether AO/CPC Bengaluru complied with statutory obligations under provisos to Section 143(1) regarding notice and objections before making adjustments.
ITAT allowed the appeal for statistical purposes and remanded the matter to CIT(A) for factual verification. The assessee society claimed exemption u/s 11(1)(d), which was denied through intimation u/s 143(1) treating government scheme funds as "income" u/s 2(24). ITAT held that if the society operates as a simpliciter pass-through entity under "Rashtriya Gokul Mission" without control over funds or right to retain unutilized amounts, such funds cannot constitute "income" u/s 2(24). The tribunal directed CIT(A) to verify the factual position regarding the society's role as implementing agency and whether AO/CPC Bengaluru complied with statutory obligations under provisos to Section 143(1) regarding notice and objections before making adjustments.
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