Case Law Details
Apne Aap Women Worldwide (India) Trust Vs ITO (ITAT Mumbai)
In ground number-4, the assessee is aggrieved by certain amounts written-off in the books of accounts but not treated as application of Trust Income by the revenue. The assessee has written-off an amount of Rs.1,71,313/- as donations receivable from the donors but remaining unrecoverable and therefore, written-off in the books of accounts. The assessee has submitted that the said donations were already been offered as Trust receipts in earlier years and therefore the non-recovery should be treated as application of income. Similarly, the assessee has written-off an amount of Rs.43.02 Lacs on account of fixed assets which have been found to be non-usable upon physical inspection by management. The Ld. AR has submitted that neither the acquisition thereof nor the depreciation against the same has even been considered as application of funds.
Keeping in view the submissions made by Ld. AR, the claim of the assessee is, prima facie, allowable subject to the verification of the stated assertions made by Ld. AR. Therefore, the write-off of donations as well as fixed assets shall be treated as application of funds subject to verification of the facts as narrated by Ld. AR before us. The Ld. AO is directed to allow the claim after due verification. This ground stands allowed for statistical purposes.
FULL TEXT OF THE ITAT JUDGMENT
1. Aforesaid appeal by assessee for Assessment Year [AY] 2012-13 contest the order of the Ld. Commissioner of Income-Tax (Appeals)-1 [CIT(A)], Mumbai, Appeal No.CIT(A)-I/IT/E-1(55)/2015-16 dated 20/10/2016 by raising following grounds of appeal:
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