THE YOUNG MEN'S MUSLIM ASSOCIATION,VIJAYAWADA vs. THE ACIT, VIJAYAWADA

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ITA 370/VIZ/2016Status: DisposedITAT Visakhapatnam31 July 2018AY 2010-113 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal found that the assessee's income after expenditure was Rs. 2,52,320.98. Therefore, it directed the Assessing Officer to consider this amount for taxation.

What were the facts?

The assessee, a charitable association, claimed exemption for Rs. 2,38,001/-. The Assessing Officer treated this as deemed income under Section 11(2) and added it to the net income, determining a total taxable income of Rs. 3,76,270/-. The CIT(A) confirmed this order.

What were the issues?

Whether the exemption claimed by the assessee was correctly disallowed and the amount treated as deemed income. The correct taxable income to be considered for taxation.

Which sections of the Income-tax Act were involved?

Section 11(2)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM

Before: SHRI V. DURGA RAO, HON’BLE & SHRI D.S. SUNDER SINGH, HON’BLE

For Appellant: Shri G.V.N. Hari – Advocate
For Respondent: Shri V. Appala Raju – Sr.DR
Hearing: 26/07/2018

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH, HON’BLE ACCOUNTANT MEMBER ITA No. 370/VIZ/2016 (Asst. Year : 2010-11) The Young Men’s Muslim vs. ACIT, Circle-2(1), Association, D.No. 29-37-139, Vijayawada. Arundelpet, Eluru Road, Vijayawada. PAN No. AAATT 9676 P (Appellant) (Respondent)

Assessee by : Shri G.V.N. Hari – Advocate. Department By : Shri V. Appala Raju – Sr.DR

Date of hearing : 26/07/2018. Date of pronouncement : 31/07/2018. O R D E R PER V. DURGA RAO, JUDICIAL MEMBER

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), Vijayawada, dated 30/03/2016 for Assessment Year 2010-11. 2. Facts of the case, in brief, are that assessee is The Young Men’s Muslim Association created to carry the charitable activities. The assessee has filed its return of income claiming exemption for an amount of Rs. 2,38,001/-. However, the Assessing Officer has

2 ITA No.370/VIZ/2016 (The Young Men’s Muslim Association)

not allowed the exemption claimed by the assessee. He held that the same is treated under section 11(2) as deemed income for 2,38,001/- and the same is added to the net income of Rs.1,38,269/- and total taxable income is determined at Rs. 3,76,270/-. Accordingly, assessment is completed.

3.

On appeal, ld. CIT(A) confirmed the order of the Assessing Officer.

4.

Before us, ld. counsel for the assessee drew our attention at page No. 23 of the paper book which is income and expenditure account for the year ended 31/03/2005. After expenditure, the income of the assessee is only Rs. 2,52,320.98 ps. and, therefore same has to be considered for taxation and not the amount of Rs. 3,76,270/-.

5.

Ld. Departmental Representative fairly conceded the submissions made by the assessee.

6.

We have heard both the parties, perused the material available on record and the orders of the authorities below.

7.

We find that the income of the assessee after expenditure is only of Rs. Rs. 2,52,320.98 ps. and therefore, same has to be considered for taxation. Thus, we direct the Assessing Officer to

3 ITA No.370/VIZ/2016 (The Young Men’s Muslim Association)

consider the amount of Rs. Rs. 2,52,320.98 ps. for taxation. Ordered accordingly.

8.

In the result, appeal filed by the assessee is partly allowed.

Order Pronounced in open Court on this 31st day of July, 2018. sd/- Sd/- (D.S. SUNDER SINGH) (V. DURGA RAO) Accountant Member Judicial Member Dated : 31st July, 2018. vr/- Copy to: 1. The Assessee – The Young Men’s Muslim Association, D.No. 29-37-139, Arundelpet, Eluru Road, Vijayawada. 2. The Revenue – ACIT, Circle-2(1), Vijayawada. 3. The Pr.CIT, Vijayawada. 4. The CIT(A), Vijayawada. 5. The D.R., Visakhapatnam. 6. Guard file. By order

(VUKKEM RAMBABU) Sr. Private Secretary, ITAT, Visakhapatnam.

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