THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR
I.T.T.A. Nos.688 & 689 of 2014
DATED:20.11.2014 Between:
The Commissioner of Income Tax-I, Hyderabad.
And Y.S.R. Foundation, Hyderabad.
… Appellant ….Respondent THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR
I.T.T.A. Nos.688 & 689 of 2014
Common Judgment : (per the Hon’ble the Chief Justice Sri Kalyan Jyoti Sengupta)
Since the issue involved both the appeals being the same, they are clubbed and disposed of by this common judgment.
These appeals are sought to be preferred and admitted against the judgment and order of the learned Tribunal dated 25.7.2013 in relation to the assessment years 2006-07 and 2007-08 on the following suggested question of law.
1. Whether, on the facts and in the circumstances of the case and when the assessee was not having registration under Section 12AA of the Income Tax Act,1961 for the assessment years 2006-07 and 2007-08, the Income Tax Appellate Tribunal is correct in law in holding that only the surplus of income over expenditure can be brought to tax as per the Income & Expenditure Account of the assessee ?
The assessee is said to have been carrying on charitable activities and while doing so, it has received donation from various sources. But, the assessee does not have any registration under Section 12-AA of the Income Tax Act, 1961, for which, no exemption can be claimed. The Assessing Officer found that the assessee incurred expenses for charitable activity. Under the law, usually deduction is to be given for expenses incurred on account of charitable activity.
The Assessing Officer did not give any usual deduction and brought the entire gross receipts to tax. The learned Tribunal after following the judgment in the case of Vidyananda Educational [1] Society vs. DIT and also the Society for Integrated [2] Development in Urban & Rural Areas vs. DCIT , held that there may not have been any registration, but usual permissible deduction has to be allowed and after deducting this from the gross receipts, the net should be brought to tax and this is what exactly has been held and done by the Tribunal.
We do not find any element of law to be decided in these appeals. The appeals are accordingly dismissed. No order as to costs.
K.J. SENGUPTA, CJ 20th November, 2014 Pnb
[1] [2012] 32 CCH 030
[2] [90 itd 493]
SANJAY KUMAR, J