TaxTMI 
TaxTMI 
TaxTMI 
2025 (7) TMI 740
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.... the following grounds of appeal : "1] The learned Addl. CIT(A) erred in confirming the addition of Rs. 2,64,260/- made by the learned CPC without appreciating that the addition made was not justified at all and the same should have been deleted. 2] The learned Addl CIT(A) erred in holding that the amount of expenditure of Rs. 10,37,511/- debited to Income & Expenditure Account also included the amount of Rs. 2,64,260/- being out of the amount accumulated in F.Y. 2019-20 and therefore, the learned CPC had rightly made the addition of Rs. 2,64,260/-. 3] The learned Addl. CIT(A) failed to appreciate that the amount of Rs. 2,64,260/- was not included in the amount of Rs. 10,37,511/- and therefore, there was no question of making any ad....
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....f Rs. 10,37,511/-. Ld.AR took us through the Audit Report and Return of Income. 2.1 Ld.AR filed written submission as under : "1] Ground Nos. 1-6: Addition of Rs. 2,64,260/- 1.1] The assessee is a charitable trust registered u/s 12A of the Act. For this year, the assessee had claimed exemption u/s 11 and had filed the return declaring total income at Rs. NIL. The learned CPC passed an intimation order u/s 143(1) wherein the total income was worked out at Rs. 2,64,260/- as against Rs. NIL declared by the assessee. It is to be noted that the CPC has made the addition of Rs. 2,64,260/- on the ground that the said amount was indicated as a disallowance of expenditure in the audit report filed in Form 10BB but was not taken into account in....
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....hus, according to the learned CIT(A), the assessee's claim is incorrect and not supported by documentary proof. He has held that the claim made seems to be misleading and hence, he has confirmed the disallowance made. 1.5] The assessee submits that the disallowance made is not justified at all. At the outset, it is submitted that the copy of the income and expenditure account is given on page 42 of the paper book. From the perusal of the same, it would be noticed that the total income during the year under consideration is Rs. 12,15,545/- and the expenditure incurred out of the current year's income towards the objects of the trust is Rs. 10,37,375/-. Further, an amount of Rs. 2,64,260/- was applied out of the income accumulated ....
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.... amount of Rs. 2,64,260/- was incurred out of the accumulated income and therefore, the same was reduced from the ear-marked fund in the balance sheet. Accordingly, it is evident that the amount of Rs. 2,64,260/- is not part of Rs. 10,37,511/- and therefore, the finding of the learned CIT(A) is grossly incorrect and the addition confirmed by him may kindly be deleted." Submission of ld.DR : 3. Ld.Departmental Representative(ld.DR) for the Revenue relied on the order of the ld.CIT(A). Findings & Analysis : 4. We have heard both the parties. It is observed that the Assessee is a charitable trust duly registered u/s.12A r.w.s 12AB of the Act. The Assessee filed return of Income on 18/10/2023 and due date for filling Return of Income was....
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....elevant to AY 2023-24 was correctly treated as not allowable as exemption u/s 11 of the Act. The said claim being an incorrect claim apparent from information furnished in return of income as was therefore correctly treated as adjustment to total income as per provisions of section 143(1)(a)(ii) of the Act. 5.13 Further, the mentioning of amount of Rs. 2,64,260/- in the audit report clearly suggested that this amount of expenditure during the previous year 2022-23 relevant to AY 2023-24 has been met out of amount accumulated of FY 2019-20 and not out of the income of trust of Rs. 12,15,545/- for the previous year 2022-23 relevant to AY 2023-24. Accordingly, the amount of Rs. 2.64,260/- out of income of trust of the previous year 2022-23 ....