2025 (3) TMI 2248

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.... the following grounds of appeal: "(A) DISALLOWANCE OF EXPENSES OF RELATED PARTY ADDED TO THE TOTAL 1 On the facts and in the circumstances of the case and in law, the Learned CIT(A) erred in confirming the action of the Assessing Officer considering the application of income to the extent not allowable u/s 13(3) amounting to Rs. 6,90,226 as income of the Appellant and thereby adding to the income The Appellant submits that the amount of expenditure in relation to party covered under section 13(3) of the Act ought to be reduced from the total expenditure on the objects of the Trust and should not be considered and added as income 2 On the facts and circumstances of the case, the Learned CIT(A) erred in co....

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..... Accordingly, the assessee had kept this amount in a fixed deposit and out of the interest income, the medical cost of referred patients was being recovered and the balance income remained part of the gross receipts. Since the donor was a specified person as per the definition of u/s 13(3) of the Act, the AO asked the assessee to furnish details of interest income earned on the donation of Rs. 1 cr. and the amount of expenses claimed on account of medical assistance given as per the direction of the Estate of Rajiv Shah. The assessee submitted that against the interest income of Rs. 9,36,201/-, it had treated patients for Rs. 6,90,026/- as per the directions of the donor. Accordingly, Ld. AO held that the exemption u/s 11 to this extent is....

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....s not exceed 15% of Income Derived from Property 11(1)(A)/11(A)(B) - 15% of 617,82,69,223 = 92,67,40,383 but restricted to net income   4,31,09,887   Total Income   Nil 6. Vide order u/s 154 dated 13.03.2024, Ld. AO rejected the assessee's contentions and proceeded to charge interest u/s 234D taking the assessed income at Rs. 6,90,266/-. 7. Aggrieved with the order of Ld. AO, the assessee preferred an appeal before Ld. CIT(A). Vide order dated 22.11.2024, the appeal has been dismissed on the ground that the addition made by the Ld. AO is not the subject matter of the rectification order. Hence, the issue cannot be adjudicated in the appeal against the order u/s 154 of the Act. 8. Ld. AR has submitte....