2023 (10) TMI 1055

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....peal filed against the order dated 26-04-2023 passed by National Faceless Appeal Centre (NFAC), Delhi for assessment year 2016-17. 2. The grounds of appeal are as under:- "1. The Learned CIT (A) has erred in confirming excess income applied of Rs. 28,25,819/- as unexplained expenditure incurred u/s 69C of the Act. 2. Without prejudice to above, Assessee prays that excess expen....

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....ion, the source of income of the trust is interest, school fees and rent income. Trust has shown the gross receipts of Rs. 3,27,79,339/- and applied income of Rs. 3,56,05,158/- for objects of the trust. The Assessing Officer observed that the assessee trust has debited Rs. 2,30,51,283/- towards educational expenses and the same has been claimed in computation of income also. Besides this on verifi....

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....d in the Balance Sheet. The addition under Section 69C can be made only when the expenditure found to be incurred is without any source. When the expenses are recorded in the regular books of accounts which are duly matched, no addition u/s 69C is called for. The Ld. AR relied upon the decision of Hon'ble Delhi High Court in case of CIT vs. Radhika Creations 10 taxmann.com 138 and the order of the....

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....t under the head "Current Liabilities" of Rs. 45,81,117/- includes name of Shri P. D. Shroff Rs. 25,00,000/- and Shri J. D. Panchal Rs. 6,00,000/-. Thus, the Ld. AR submitted that the CIT(A) was not justified in confirming the addition. 6. The Ld. DR submitted that the assessee trust has not mentioned any borrowings in the balance sheet, the contention of the Ld. AR that of borrowed amount from....