HAPPY HOURS SCHOOL SOCIETY,JODHPUR vs. ITO (EXEMPTION), JODHPUR

ITA 390/JODH/2025Status: DisposedITAT Jodhpur12 August 2026AY 2018-194 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the nomenclature "provision expenses" was a misinterpretation. The expenditure was for actual purchases of day-to-day consumables and housekeeping items, and payments were made. Therefore, the disallowance was erroneous.

What were the facts?

The assessee claimed expenses under the head "general provision item purchase". The lower authorities treated this as a provision for un-incurred expenses and disallowed it. The assessee argued that it represented actual expenditure on consumables.

What were the issues?

Whether expenses described as "provision expenses" represent actual expenditure incurred or a mere provision for un-incurred liabilities.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR

For Appellant: CA (Physical)
For Respondent: DR (Physical)

PER BENCH: The aforesaid appeal has been filed by the assessee against the order dated 25.02.2025 passed by the learned CIT(A), NFAC, in relation to the assessment order passed under section 143(3) of the Income-tax Act, 1961 for the Assessment Year 2018-19. 2. The only grievance pressed before us is against the addition of Rs.12,77,638/-, sustained by the learned CIT(A), in respect of expenses described in the accounts as “general provision item purchase”. The learned CIT(A), while dealing with this issue in para 5.7 of the impugned order, has observed that the amount represented a provision for expenses and that the actual expenditure had 2 Asst. Year: 2018-19 not been incurred. On this premise, the disallowance made by the Assessing Officer has been confirmed.

3.

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

Recent GST High Court judgments

Search GST case law →