TaxTMI 
TaxTMI 
2025 (7) TMI 304
X X X X Extracts X X X X
X X X X Extracts X X X X
....lant having been granted registration u/s 12AB of the Income Tax Act vide Order dated 24.09.2021, during the pendency of proceedings before CIT(A) would be entitled to exemption u/s 11 of the Act for the year under consideration i.e. AY 2016-17 in view of the Proviso to Section 12A Sub-section (2) and the provisions of Section 11 ad 12 would apply accordingly. 2. On the facts and in the circumstances of the case and in law the Id CIT(A) has erred in disallowing the expenses incurred for charitable purpose without appreciating that the registration under section 12AB of the income Tax act has been obtained by the trust. 3. The Ld CIT(A) erred on facts and in law in confirming Order u/s 154 and accepting the income as per in....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... "5.1 I have gone through the order of the JAO and submissions of the appellant. I do not find any infirmity in the order of the JAO holding that the mistake allegedly committed by the CPC as not being apparent from record and thus, does not fall within the purview of section 154 of the Act. The JAO, after having gone through information available, concluded that the appellant was not eligible to avail exemption u/s 11 of the Act for the AY 2016-17 as necessary approval u/s 12AA of the Act was not obtained by it. The appellant filed return of income in ITR 7 which is applicable for an institution eligible for exemption u/s 11 of the Act and, therefore, the appellant was lawfully obligated to furnish details of approval accorded at th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....orted that the approval was granted on 31/03/2016 by Commissioner of Income Tax, Kolhapur. Further, the appellant has reported Rs. 12.24.343/- to have been applied for the purpose of trust and set apart a sum of Rs. 27.835/- for future application. The supply of above details may not be a result of casual approach. It shows the intention of the appellant to avail exemption. Further, necessary provisions are there in the Act to rectify the mistake committed in the return of income within a specified time period. The appellant could have rectified the same with choosing of applicable form of ITR within the time allowed by the Act. In view of the above, the order of the JAO is just and lawful. 5.3 The appellant has contended that whil....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the Act for the relevant AY under consideration. However, treating the assessee's income taxable in the status of an AOP, the Ld. AR that only the net income of Rs. 27,835/- which should be brought to tax at the normal rate of tax applicable to AOP as against the entire gross receipts of Rs. 12,52,178/-. 7. The Ld. DR relied on the order of the Ld. JAO and Ld. Addl./JCIT(A). 8. We have heard the Ld. Representatives of the parties, perused the material on record and the paper book filed by the Ld. AR on behalf of the assessee. The facts of the case are not in dispute. The Ld. Counsel for the assessee has admitted that the assessee trust is not eligible for availing exemption u/s 11 of the Act for the relevant AY 2016-17. The return of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....led principle of law that only net income should be taxed after allowing claim of the expenditure as per the relevant provisions of the Act. However, it is noted that both the Ld. JAO as well as the Addl./JCIT(A) have not examined and verified the said claim of the assessee. 9. Considering the totality of the facts and in the circumstances of the case enumerated above, we deem it fit, in the interest of justice, to set aside the order of the Ld. Addl./JCIT(A) and restore the issue back to his file with a direction to decide the issue afresh on merits after verification of the expenses claimed by the assessee as per fact and law and reassess the income of the assessee on net basis as a result of such verification thereof. Both the Ld. JAO....