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Income Tax Appellate Tribunal, “SMC” BENCH, KOLKATA
Before: DR. MANISH BORAD, HON’BLE & SHRI PRADIP KUMAR CHOUBEY, HON’BLE
O R D E R
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The present appeal is directed at the instance of the assessee against the order of the learned Commissioner of Income Tax (Appeals)/Addl/JCIT(A)-4, Delhi (hereinafter the “ld. CIT(A)”) dt. 20/12/2023, passed u/s 250 of the Income Tax Act, 1961 (“the Act”) for Assessment Year 2020-21.
When the case was called for hearing, none appeared on behalf of the assessee. No application for adjournment has been filed. Under these circumstances, we proceed to adjudicate the instant appeal ex- parte qua the assessee, on the basis of available records and hearing the ld. D/R.
On perusal of the grounds of appeal
we notice that, the sole grievance of the assessee is against the addition of Rs.8,90,723/- made Assessment Year: 2020-21 Kulti Mahotsav Committee by the ld. Assessing Officer/CPC treating gross receipts as income and not allowing any deduction of the expenditure incurred during the year. The ld. D/R supported the order of the lower authorities.
4. We have heard rival contentions and perused the material placed before us. We notice that the assessee is a Trust formed on 18/11/2019 with the main object of organizing cultural events at the annual cultural even called Kulti Mahotsav and also to promote Arts, create health awareness, held people in need of food, clothing, education and medical treatment, skill development etc. The assessee has not applied for any registration u/s 12A of the Act and, therefore, is not eligible for exemption u/s 11 of the Act. We also note that the assessee has filed the return on Form No. 7 on 24/03/2021 but has inadvertently claimed the exemption u/s 11 for the gross receipts of donation of Rs.8,90,330/-. In the appeal set, the assessee has filed computation of income along with copy of the income tax return with all its annexures. Copy of audited income and expenditure account and balance sheet has also been filed. Perusal of the same indicates that there is a general trust fund of Rs.10,000/- and certain loans and advances have been taken from the members for the purpose of carrying out the activities. Further, during the year, as against donation of Rs. 8,90,330/- and savings bank a/c interest of Rs. 393/-, assessee has incurred expenditure to the tune of Rs.10,77,630/- which includes decoration, conveyance, flower bouquet, food, musician payments etc. Going through the income and expenditure account clearly indicates that the assessee trust is working for the cultural and charitable purposes and whatever funds they