TaxTMI 
TaxTMI 
2019 (12) TMI 1698
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....) of the Income Tax Act, 1961 ["Act" in short] as well as under section 154 of the Act. Against the order under section 154 of the Act, the assessee has raised following grounds: "1. The Commissioner of Income-tax (Appeals) is not justified in holding that non-allowance of expenditure incurred to earn gross receipts from a college and school involves a complex and debatable legal issue. 2. The issue involved, viz., that absence of registration under section 12AA can disentitle claim for application of income and not deduction of expenses incurred for purpose of earning receipts, does not involve any argument, pros and cons, having been decided by Courts of La3 including 135 ITR 485 Mad. 3. Non considering the amou....
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....arrived at in a normal commercial manner, expenses incurred for purpose of earning receipts should have been allowed deduction. Alternately, it is not correct to assess gross receipts as income without taking into expenditure incurred to earn them. Expenses should have been allowed while computing taxable income. Income of a Trust to be assessed should be understood in its commercial sense and arrived at in normal commercial manner (68 ITD 95 Mum, 135 ITR 485 Mad, 56 ITD 37 Del Trib, 125 ITR 531 MP, 162 ITR 612 Guj). 5. Application made for charitable purposes out of income earned alone is allowable, only if a Trust is registered under section 12AA and not the expenses incurred for purpose of earning income. 6. Observation....
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....on made to 'Nil' income returned, is not lawful. For these and other reasons, which may be stated at the time of hearing of the appeal, it is prayed that the 'Nil' income returned may please be accepted. 2.1 Brief facts of the case are that the assessee has filed return of income on 18.01.2014 for the assessment year 2013-14. The belated return filed by the assessee was processed under section 143(1) of the Income Tax Act, 1961 ["Act" in short] by the CPC, Bengaluru determining Rs.. 99,51,157/- as the liability towards tax and interest and an intimation under section 143(1) of the Act issued was received by the assessee on 23.03.2015. Against the intimation, the assessee filed the rectification petition under sec....
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....ppeal (Civil) No. 9432 of 2003, the ld. CIT(A) dismissed the grounds raised by the assessee. On being aggrieved, the assessee preferred further appeal before the Tribunal. 3. Before us, with regard to the appeal against the order under section 154 of the Act, by reiterating the submissions as made before the authorities below, the ld. Counsel for the assessee has submitted that in the absence of registration under section 12AA of the Act, necessary expenses incurred in connection with the activity carried on, wholly and exclusively for earning the income, ought to have been allowed, while computing taxable income, as income is to be computed on commercial principles, taking into account provisions of Income Tax Act. It was further submis....
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....ection 139(1) of the Act and moreover, the assessee has not filed any revised return of income to consider the claim of deduction as mandated by the Hon'ble Supreme Court in the case of Goetze India Ltd. v. CIT (supra). It was further submission that there was no apparent mistake warranting any rectification under section 154 of the Act and moreover, there was no revised return of income filed within the time prescribed under the Act to allow any deduction as claimed by the assessee and pleaded for dismissing both the appeals of the assessee. 5. We have heard both the sides, perused the materials available on record and gone through the orders of authorities below including paper book filed by the assessee. Admittedly, the assessee has f....
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....the assessee's claim that for the assessment year 2013-14, it should be deemed to be an assessment proceedings pending before the Assessing Officer cannot be accepted. Based on the identical facts, similar finding was given by the Coordinate Bench of the Tribunal in the case of Soundaram Chokkanathan Educational and Charitable Trust v. ITO in I.T.A. No. 1844/Chny/2017 dated 30.08.2019. Respectfully following the above decision, the appeal filed under section 154 of the Act stands dismissed. 6. So far as the claim of deduction of expenditure is concerned, the assessee has not at all filed revised return. In this circumstances, neither the Assessing Officer nor the appellate authority have any power to admit the claim of the assessee as pe....