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Facts
The assessee's appeal for AY 2019-20 arose from an order under Section 154 of the Income Tax Act, 1961. The lower authorities added Rs. 24,99,982/- to the assessee's income.
Held
The Tribunal held that while the assessee was not entitled to Section 11 exemption for want of a tax audit report, the denial of deduction for business expenditure was not justified. The matter was restored to the assessing authority for fresh adjudication.
Key Issues
Whether the assessee is entitled to deduction for business expenditure when its entire gross receipts have been assessed, and if Section 11 exemption can be denied due to non-filing of tax audit report.
Sections Cited
154, 143(1), 11
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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
Asstt. Year : 2019-20 All India Steel Rerollers Association, Vs Income Tax Officer, Sagar Apartments, 6, Tilak Marg, Ward Exemption-1(1), New Delhi-110001 New Delhi-110002 (APPELLANT) (RESPONDENT) PAN No. AAAAA0224F Assessee by: Sh. Alok Agarwal, CA Revenue by : Sh. Manoj Kumar, Sr. DR Date of Hearing: 21.07.2025 Date of Pronouncement: 21.07.2025 ORDER This assessee’s appeal for Assessment Year 2019-20, arises against the CIT(A)/NFAC DIN & order No. ITBA/NFAC/S/250/2024-25/1071650728(1) dated 28.12.2024, in proceedings u/s 154 of the Income Tax Act, 1961 (in short “the Act”).
Heard both the parties at length. Case file perused.
It transpires during the course of hearing with the able assistance coming from both the parties that the learned lower authorities have added an amount of Rs.24,99,982/-, in the CPC’s section 143(1) processing as reiterated in it’s section 154 rectification dated 07.12.2022 and upheld in the lower appellate discussion.
All India Steel Rerollers Association 4. It is in this factual backdrop that the learned counsel representing assessee fairly concedes that it is indeed not entitled processing section 11 exemption available to a registered trust for want of filing of tax audit report prescribed in the Income Tax Rules. His next plea is that given the fact that the assessee has been held as assessable for it’s entire gross receipts by the learned lower authorities, it has been declined the benefit to corresponding deduction representing business expenditure which is not disputed by the Revenue side.
This being the clinching factual position, the assessee’s instant latter substantive grievance is hereby restore back to the learned assessing authority for it’s appropriate afresh adjudication subject to a rider that the assessee shall plead and prove all of it’s entire business expenditure at it’s own risk and responsibility, in consequential proceedings. The Revenue’s vehement contentions supporting assessment of the assessee’s entire gross receipts is hereby declined in principle in foregoing terms.