Genuine Application of Income Cannot Be Denied for Mere Reporting Mismatch in Return

Gurudeva Seva Samsthe Vs ITO (ITAT Bangalore) Genuine Application of Income Cannot Be Denied for Mere Reporting Mismatch in Return The Bangalore ITAT held that a charitable trust’s claim of capital expenditure as application of income cannot be disallowed merely because of a mismatch in figures reported in different schedules of the return of income. The Tribunal observed that when the expenditure is supported by documentary evidence and its genuineness is not disputed, a technical reporting inconsistency cannot be the sole basis for denial of the claim. In this case, the assessee-trust clai...