2022 (4) TMI 1065

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.... ( Addl. CIT ) - Ld DR ORDER Manoj Kumar Aggarwal ( Accountant Member ) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2019-20 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC) [in short 'CIT(A)] dated 25.08.2021 in the matter of intimation issued u/s 143(1) issued by CPC, Bangalore on 04.06.2020. 2. The Ld. AR, drawing ....

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....r the object of the trust. The excess application of income, thus was Rs. 38.17 Lacs. However, the assessee disallowed an amount of Rs. 48.69 Lacs u/s 40(a)(ia) and computed net income of Rs. 10.51 Lacs which has been offered to tax and due taxes have been paid thereon. The CPC, vide communication dated 20.03.2020, proposed an adjustment of Rs. 38.17 Lacs (Rs. 48.69 Lacs - Rs. 10.51 Lacs) since th....

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....see's own return of income and the accompanying documents. The assessee's plea that Explanation-3 to Sec.11(1) has not been considered correctly is not supported by his own return and the deduction u/s 11 has been computed on the basis of particulars reported by the assessee in his return of income. Thus, the appeal was dismissed against which the assessee is in further appeal before us. 5. We fi....

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....clause (a) of section 40 and subsections (3) and (3A) of section 40A, shall, mutatis mutandis, apply as they apply in computing the income chargeable under the head "Profits and gains of business or profession". In other words, to compute the application of income, the disallowance as mentioned in Sec.40(a)(ia) or Sec.40A(3) / (3A) shall be added back and not considered as application of income.....