AI Drafter 
TaxTMI 
TaxTMI 
2024 (8) TMI 1013
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....ct, 1961 dated 20.09.2022. The assessee has raised the following grounds of appeal : "1. The Learned CIT(A) has erred in dismissing the grounds of appeal filed before him by the assessee and in confirming the arbitrary and adhoc disallowance of Rs. 53,56,317/- being the 50% of expenditure claimed by the assessee. 2. Appellant craves leave to add, alter, amend or substitute to the above ground of appeal at the time of hearing." Brief facts of the case : 2. As emanating from assessee's written submission and orders of the lower authorities, assessee e-filed return of income on 31.05.2021 declaring total income at Rs. Nil for A.Y. 2020-21 in ITR-5. Admittedly assessee is a charitable trust registered under Bombay Public....
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....inting and Stationery Rs. 84,937/- Remuneration to Doctors and Nurses Rs. 32,97,914/- Remuneration to Pharmacists and Other Staff Rs. 11,87,548/- Shop Rent Rs. 6,34,667/- Student Bhojan Expenses Rs. 1,54,854/- Telephone Expenses Rs. 22,461/- Xerox Expenses Rs. 2,062/- Cost of Medicine Sold Opening Stock Rs. 6,22,306/- Add: Purchase during the year Rs. 46,28,468/- [sample copies of Purchase bills are attached herewith] Less: Closing Stock Rs. 5,61,225/- Rs. 46,89,549/- Total Rs. 1,08,75,308/- 3. Assessee also claimed during the assessment proceedings, which is mentioned in the assessment order that assessee could not file Return of Inco....
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....appeal before this Tribunal. Submission of ld.Authorised Representative(ld.AR) : 5. The ld.AR filed written submission. The ld.AR submitted that due to technical reasons, assessee could not file Return of Income in ITR-7. Therefore, assessee filed Return of Income in ITR-5. The Department has not rejected assessee's Return of Income. Nowhere in the assessment order, it is mentioned that Return of Income filed by the assessee is rejected. Rather the assessment order is based on Return of Income filed in ITR-5. Assessee has not claimed any exemption under section 11 of the Act. Assessee has claimed the expenditure incurred for earning the income under section 57(iii) of the Act. During the assessment proceedings, AO had verified the doc....
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....is an admitted fact that expenditure has been claimed under section 57(iii) of the Act. The said section 57(iii) is reproduced here as under : "Section 57(iii) of the Act : (iii) any other expenditure (not being in the nature of capital expenditure) laid out or expended wholly and exclusively for the purpose of making or earning such income;" 8. Thus, as per section 57(iii), any expenditure which has been incurred wholly and exclusively for earning income and which is not capital expenditure is an allowable deduction. In this case, it is not the case of the AO that the expenditure was capital expenditure. Thus, the only thing one needs to verify is that whether it was incurred wholly and exclusively for the purpose of e....
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....e is no challenge to the finding of fact recorded by the Tribunal. If such expenditure is not allowed, it may amount to taxing the gross receipts of the assessee and not the income, which is not permissible under the income tax law. Moreover, upto the assessment year 2002-03 the assessee was exempt from tax under Section 10(23C); from the assessment year 2006-07 it has been granted registration or a charitable institution under Section 12A making it eligible for the exemption under Section 11. 8. For the aforesaid reasons we do not find any infirmity or error of law in the decision of the Income Tax Appellate Tribunal. There is no challenge to the findings of fact recorded by it. In the circumstances, no substantial question of law....