Society v. Dit[[1]]And Also The Society For Integrated

THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTISENGUPTA 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 … Appellant Y.S.R. Foundation,Hyderabad. ….Respondent THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTISENGUPTA ANDTHE 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 JyotiSengupta) 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 admittedagainst the judgment and order of the learned Tribunal dated 25.7.2013 in relation to the assessment years2006-07 and 2007-08 on the following suggested question of law. dated 25.7.2013 in relation to the assessment years2006-07 and 2007-08 on the following suggested question of law. 1.Whether, on the facts and in the circumstances of thecase and when the assessee was not having registrationunder Section 12AA of the Income Tax Act,1961 for theassessment years 2006-07 and 2007-08, the Income TaxAppellate Tribunal is correct in law in holding that onlythe surplus of income over expenditure can be brought totax as per the Income & Expenditure Account of theassessee ?case and when the assessee was not having registrationunder Section 12AA of the Income Tax Act,1961 for theassessment years 2006-07 and 2007-08, the Income TaxAppellate Tribunal is correct in law in holding that onlythe surplus of income over expenditure can be brought totax as per the Income & Expenditure Account of theassessee ? The assessee is said to have been carrying on charitableactivities and while doing so, it has received donation from varioussources. But, the assessee does not have any registration underSection 12-AA of the Income Tax Act, 1961, for which, noexemption can be claimed. The Assessing Officer found that theassessee 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 andbrought the entire gross receipts to tax. The learned Tribunal afterfollowing the judgment in the case of Vidyananda Educational Society vs. DIT[[1]]and also the Society for Integrated Development in Urban & Rural Areas vs. DCIT[[2]],held thatthere may not have been any registration, but usual permissiblededuction has to be allowed and after deducting this from thegross receipts, the net should be brought to tax and this is whatexactly has been held and done by the Tribunal. We do not find any element of law to be decided in theseappeals. The appeals are accordingly dismissed. No order as tocosts. __________________ K.J. SENGUPTA, CJ _________________ SANJAY KUMAR, J 20[th] November, 2014 Pnb [1][2012] 32 CCH 030 [2][90 itd 493]