Tripura Bambu and Cane Development Centre Vs ITO (ITAT Delhi)
No 12A Registration ≠ Gross Receipts Tax: ITAT Delhi Directs Tax Only on Surplus
Delhi ITAT held that even where a charitable institution is not registered u/s 12A, the Revenue cannot assess its entire gross receipts as income. The Tribunal applied the real income theory and reiterated that only the surplus (receipts minus expenses) can be brought to tax, even if the assessee is assessed as an AOP.
The ITAT noted that the books of account were neither rejected nor disputed, and in earlier as well as subsequent assessment years, the Revenue itself had consistently taxed only the surplus. Holding that a different approach for the year under appeal was unjustified, the Tribunal directed the AO to recompute income by taxing only the surplus, following the principle of consistency. The appeal was accordingly partly allowed
FULL TEXT OF THE ORDER OF ITAT DELHI
1. The appeal in ITA No.2380/Del/2025 for AY 2018-19, arises out of the order of against the rejection of application filed u/s 12A for registration.
2. At the outset, we find that the registry had noted that the appeal has been filed by the Assessee with a delay of 10 days. The Assessee had duly responded by stating that there was a typographical error that had crept in the Form No. 36. Factually there was no delay in filing of appeal at all. The Assessee had filed the revised Form No. 36 and had also filed the evidence regarding the date of receipt of the appellate order. Considering the same, we hold that there is no delay in filing of appeal by the Assessee as pointed out by the registry.
