SHRI KARADIA RAJPUT BANDHU ASSOCIATION,AHMEDABAD vs. THE DCIT, CPC, BANGALORE PRESENT JURISDICTION THE INCOME TAX OFFICER, WARD-1(EXEMPTION), AHMEDABAD

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ITA 347/AHD/2024Status: DisposedITAT Ahmedabad09 October 2024AY 2017-18Bench: DR. BRR KUMAR (Accountant Member)2 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that Form No. 9A is not required to be filed when there is a net deficit in the trust's income, as there is no surplus to carry forward. Therefore, the disallowance was incorrect.

What were the facts?

The assessee claimed expenses incurred on the objects of the Trust. The CPC disallowed these expenses for not furnishing Form No. 9A before the due date of filing the return.

What were the issues?

Whether Form No. 9A is mandatory for claiming expenses when there is a deficit in the trust's income. Whether expenses incurred for the objects of the trust are eligible for deduction under Section 11.

Which sections of the Income-tax Act were involved?

Section 11

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD

Hearing: 09/10/2024Pronounced: 09/10/2024

Asstt.Year : 2017-18 Shri Karadia Rajput Bandhu The DCIT, CPC, Association Vs Bangalore 2, Professors Colony (The ITO, ward-1 Nr. Vijay Restaurant (Exemption) Vijay Char Rasta Ahmedabad. Navrangpura, Ahmedabad. PAN : AAATK 9976 D (Applicant) (Responent) : Assessee by None Revenue by : Shri Ravindra, SR.DR सुनवाई क� तारीख/Date of Hearing : 09/10/2024 घोषणा क� तारीख /Date of Pronouncement: 09/10/2024 आदेश आदेश/O R D E R आदेश आदेश This is assessee’s appeal against the order of the ld.Commissioner of Income Tax (Appeal), National Faceless Appeal Centre (NFAC), Mumbai dated 8.2.2024 for the Asst.Year 2017-18 passed under section 250 of the Income Tax Act, 1961 (“the Act” for short).

2.

The grounds raised

by the assessee in the appeal reads as under:

1. The learned CIT(A) has erred in not granting the expenses incurred on the objects of the Trust [including establishment expenses] of Rs.4,90,434 in as much as the expenditure is incurred wholly and exclusively for the objects of the Trust and therefore eligible for deduction under Section 11.

2. The learned CIT(A] has erred in confirming the AO's view that Form No. 9A is required to be filed in as much as there is a net deficit during the year and that Form No. 9A is required to be filed only if the surplus is claimed to be carried forward under Section 11(1)(a) and same as net deficit, the question of filing Form No.9A does not arise.”

3.

Heard the ld.DR.

4.

After going through the record available on record, perusal of the orders of the Revenue authorities, and pleadings of the assessee in the grounds of appeal

, I find that the CPC has not granted the provision for expenses incurred on the ground that Form No.9A was not furnished before the due date of filing of the return. It is found that the assessee had no surplus, and in the absence of any surplus, nothing can carried forward to the next year, and therefore, Form No.9A is not required to be filed as per the Explanation-2 to provisions of section 11. Hence, the appeal of the assessee is hereby allowed.

Dictated on the Open Court, typed and pronounced on 9th October, 2024.

Copy of this order be given to the assessee. The Registry is directed to dispatch as per procedure.

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