TaxTMI 
TaxTMI 
2026 (2) TMI 1295
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....he deletion of addition of Rs. 3,96,94,712/- being 10% of the total expenses of Rs. 39,69,47,124/-. 4. We have gone through the order of the Ld. CIT(A) who has dealt with the issue at para 5 of his order as under: "5. Decision: Grounds of appeal no. 1, 2 and 3: In these grounds, the appellant has challenged the addition made by the AO of Rs. 3,96,94,712/-. 5.1 The appellant had submitted that it is a Trust registered under the Bombay Public Trust Act and also u/s 12A of the Act. It is involved in major educational activities and managing various educational entities from pre-primary to post graduate level. Institutes managed by it are affiliated with GSEV, Sardar Patel University and AICTE. It has given the list of 35 institutes which are under its management. Vide filing its ITR the appellant discloses consolidated income for all 35 educational units under it and similarly claims consolidated expenditure incurred for all such units. Its books of accounts are duly audited by statutory auditors and contrary to the remark of the AO in para 4.4 of his Order that 'The summary of expenditure made in cash is also not attached with the reply', copy of....
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....as also filed details of its entire educational expenses of all the units which included salary expenses in it. For ready reference such details for few of its units are reproduced hereunder: It has provided its salary sheet on test check basis which is reproduced hereunder: It has also copy provided of copies of various ledgers concerning salary payments, copy of cash book and copy of its bank book evidencing payments of salaries as well as other expenditure incurred by it. The appellant also has brought on record the evidences about grants-in-aid received by it and utilized towards salary payments. One such evidence in this regard is reproduced hereunder: The appellant has also submitted various other expenditure ledgers such as electricity expenses, campus development expenses, advance salary grants account etc. It has also provided audited copies of Income and Expenditure Accounts of all its units separately. One such Income and Expenditure Account is reproduced hereunder: In the documentary evidences filed by the appellant to substantiate its claim of application of income, instead he has proceeded to disallow 10% of total expenses on adhoc ....
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.... which he noted the appellant to have submitted; (i) Unit-wise break up, (ii) Salary sheet on test check basis, (iii) copies of various ledgers of concerned salary payment & (iv) copy of cash book and bank book evidencing payment of salary. He further noted the assessee to have submitted details, unit-wise of expenditure incurred therein and ledgers of various expenditure accounts, such as, electricity expenses, development expenses, salary grant account etc. He noted the assessee to have been provided copies of audited income and expenditure account. Noting the voluminous evidences produced by the assessee as above with respect to its claim of expenses, the Ld. CIT(A) further noted that the AO had not brought on record any lapses or lacunae in the evidences filed by the assessee. He noted the AO to have disallowed 10% of the total expenses on ad hoc basis without specifying any particular reason for the same. The Ld. CIT(A), thereafter, went on to hold that the assessee discharged its onus of proving its claim of expenses by filing all documentary evidences and onus, therefore, shifted on the AO to point any specific defects therein before proceeding to make any disallowance of th....
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....lary 170400.00 Te Pravathi Teacher 211175.00 9 Annoil Homeopathic Med, College & Res Int. Staff Salary eup 12150453 00 10 Anend Haspaal 1925237 00 11 Anno/ Technical Institute | Grantable Sawy tip 1434855.00 13| Anand Institute of Business Studies To Salary Expe 3731956.00 14 Anand Institute of Management & Inf.Sci. Calory exp 5821909.00 2035085.00 3 5 7 8 10 Page 8 of 16 Document 2 18 Anand Law College ( GIA ] To Salary Expe 4474428.00 17 Anand Law College Diploma & L.L.M To Adhok Non Teaching Satff Salary 65210.00 To Visiting Teaching Staff Salary 119600.00 184810.00 18 Anand Lax College V Year Interested Course To Salary Expe 3616726.00 19 Family Planning To Salary Expe 1464975.00 20 Anand Pharmacy College To Salary Caps 10226680 00 21 Anand Industrial Traming Centre ( Granted ) To Salary esp 9061 180.00 22 Anand Industrial Training Centre ( Non Granted ] To Salary Expa 968554.00 23 Matrumangalam Hospital To Salary Expe 1016403.00 24 Anand High School - Upper Primary Section To Salary Expe 2122032.00 25 Anand Institute of PG St....