Case Law Details
Bombay Society of the Salesian Sisters India Vs ITO (ITAT Mumbai)
The case involves the Bombay Society of the Salesian Sisters India, a registered society and public trust, which incurred expenditure on repairing a school building owned by another charitable trust. The Assessing Officer (AO) disallowed the expenditure under Section 11(1)(a) of the Income Tax Act, asserting that the building did not belong to the appellant society.
Appeal and CIT(A)’s Order: The appellant appealed to the Commissioner of Income Tax (Appeals) [CIT(A)], who, despite the appellant’s alleged non-response to notices, proceeded to decide the appeal based on the available material. The CIT(A) upheld the disallowance, citing the absence of an agreement or Memorandum of Understanding (MoU) between the appellant-society and the building owner regarding maintenance.
ITAT’s Decision: The Income Tax Appellate Tribunal (ITAT) Mumbai considered whether the expenditure on repairs and property tax was exempt under Section 11(1)(a). The appellant argued that the nature of the expenditure (capital or revenue) was irrelevant, and reliance was placed on relevant case laws.
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