Case Law Details
Asha Modern Educational Society Vs ITO (ITAT Delhi)
Introduction: The case of Asha Modern Educational Society versus the Income Tax Officer (ITO) revolves around the denial of the claim for the application of income for charitable purposes under Sections 11 and 12 of the Income Tax Act. Despite compliance with regulations, the appellant faced challenges due to technical discrepancies. Let’s delve deeper into the intricacies of this legal battle.
Detailed Analysis: The appellant, an Educational Trust registered under Section 12AA of the Income Tax Act, claimed application of income for charitable purposes. However, the processing of its Income Tax Return under Section 143(1) lacked verification of its registration under Section 12AA. Consequently, the claimed deduction was disallowed.
Following this, a rectification application was filed under Section 154, seeking reconsideration of the claim. Despite compliance with circulars and timely filing, the application was rejected, leading to an appeal before the CIT(A).
The appellant contended that adherence to procedural formalities was met, citing circulars and precedents. Yet, the CIT(A) upheld the disallowance, prompting the appellant to escalate the matter to the ITAT.
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