Case Law Details
ITO Vs 67th Annual Conference of CSI-2015 (ITAT Chennai)
ITAT noted that the payments made by the assessee entity in accordance with bye-laws / specific purpose for which it was constituted and the AO has not disputed the nature of contribution made by assessee or the receipts transferred being directly in nexus with the income earned during the assessment year under consideration and the amount transferred. In our view, the surplus generated from conducting conference of the CSI would not become income in the hands of the assessee because this was a tool created by the CSI society and it in no way can be called application of income on diversion.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
This appeal by the Revenue is arising out of the order of Commissioner of Income Tax (Appeals)-12, Chennai-8 in ITA No.135/CIT(A)-12/18-19 dated 29.07.2019. The assessment was framed by the ITO, Non-Corporate Ward 10(4), Chennai for the assessment year 2016-17 u/s.143(3) of the Income Tax Act, 1961 (hereinafter the ‘Act’) vide order dated 14.12.2018.
2. The only issue in this appeal of Revenue is against the order of CIT(A) deleting the addition made by the AO towards the amount transferred to the society holding the same as application of income. For this, Revenue has raised following Ground No.2:-
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