TaxTMI 
TaxTMI 
2022 (9) TMI 304
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....t, 1961 ("the Act") by learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, ["learned CIT(A)"], for the assessment year 2014-15. 2. As, one of the appeal was filed by hand and other by post for the very same assessment year against the very same impugned order, learned Authorised Representative ("learned AR‟), during the course of hearing, at the outset, sought permission to withdraw ITA No. 1467/Mum/2021 being a duplicate appeal. The submission of the learned AR were verified from the record and found to be correct. Accordingly, assessee‟s appeal being ITA No. 1467/Mum/2021 is dismissed as withdrawn. 3. In its appeal, the assessee has raised following grounds: 1. That on the facts....
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....ooks of account towards gratuity which is contrary to the facts involved in the present appeal. The provision for gratuity was actually paid to the employees in the year of their resignation / termination of employment. 1.4 That on the facts and law involved the Ld. CIT(A) erred in confirming the disallowance made by Ld. AO towards provision for gratuity when such provision was consistently made in the books of accounts by following mercantile system of accounting in the earlier years and no such disallowance was made. 1.5 That the disallowance as made by Ld. AO and confirmed by Ld. CIT(A) is based on erroneous views and / or non-appreciation of the facts and law involved and without properly considering the submissions an....
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....me of the trust which is applied to charitable purpose shall not form part of the total income and the word "applied‟ does not mean "spent‟ by the assessee. The Assessing Officer ("AO‟) vide order dated 07/10/2016 passed under section 143(3) of the Act did not agree with the submissions of the assessee and held that the assessee has made a provision only, which is different than applied. The AO further held that provision can be withdrawn at any point of time in future, which is not expended and thus, the assessee has not spent the amount of provision for gratuity of Rs. 8,00,019. Accordingly, the said amount was added to the total income of the assessee. In appeal, learned CIT(A) vide impugned order dismissed the appeal f....
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....me will be deemed to have been applied by the assessee. In support of its submissions, the learned AR placed reliance upon the decision of the coordinate bench of the Tribunal in Anandlal & Ganesh Podar Society vs DCIT, in ITA No. 5962/Mum/2019. 7. On the other hand, learned Departmental Representative vehemently relied upon the orders passed by the lower authorities. 8. We have considered the rival submissions and perused the material available on record. As per provisions of section 11 (1) (a) of the Act, the income derived from the property held under the trust shall not be included in total income of the previous year to the extent such income is applied for charitable purposes in India. While dealing with the issue whether provis....
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....ith the money. It seems to us that it need not necessarily be so. The expenditure should be understood as necessary outgoings. The provisions are necessary to be made for certain purposes like, provision for depreciation is to be made in respect of decrease in value of property through wear and tear, deterioration or obsolescence and allowance is made for this purpose in book-keeping, accountancy, etc. It is the provision made for the loss or expenses incurred through using the asset for earning profits, and should, therefore, be charged against those profits as they are earned. 14. If depreciation is not provided for, the books will not contain a true record of revenue or capital. If the asset were hired instead of purchased, the ....