SANTHAL PARGANA SKILLED DEVELOPMENT FOR RURAL MASS,RANCHI vs. ITO (EXEMPTION) WARD, RANCHI

ITA 260/RAN/2018Status: DisposedITAT Ranchi09 January 2019AY 2014-152 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that while the assessee failed to prove each head of expenditure, a lumpsum disallowance of Rs. 1,00,000/- out of the total disputed expenses of Rs. 3,77,046/- would meet the ends of justice. The Tribunal also directed the re-computation of Section 234B interest on returned income.

What were the facts?

The assessee, a trust, challenged the disallowance of 20% of teaching staff expenses and other miscellaneous expenses. The assessee argued that as a trust, it had provided full proof of expenses.

What were the issues?

Whether ad-hoc disallowance of expenses is justified when full proof is not provided by a trust, and how Section 234B interest should be computed.

Which sections of the Income-tax Act were involved?

Section 144,Section 234B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RANCHI BENCH “SMC”, RANCHI

Before: SH. S.S.GODARA

Hearing: 07.01.2019Pronounced: 09.01.2019

PER SH. S.S.GODARA, JUDICIAL MEMBER This assessee’s appeal for AY 2014-15 arises against the order dated 31.05.2016 passed by the CIT(A), Ranchi in Appeal No.CIT(A), Ranchi/10325/2016-17 in proceedings u/s 144 of the Income tax Act, 1961 (in short “Act”). Heard both the parties. Case file perused.

2.

I find at the outset that the assessee sole grievance challenges the correctness of both the lower authorities action disallowing 20% of expenses on teaching staff, withdrawals on 26.03.2014, disallowance of accounting charges and medicine purchases of Rs.2,57,310/-, 1,00,000/-, 1,19,736/- and 7,648/- respectively totalling to Rs.3,77,046/-. Learned Counsel’s only argument is that this assessee is a trust and therefore, it follows full proof evidence of expense

The order continues below.

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