Provision for Expenses Not Claimed as Applied Income Can’t Be Disallowed: ITAT Jaipur

ITO (Exemption) Vs Rajasthan Cricket Association (ITAT Jaipur)

Where provision for expenses was not claimed as applied income during the year, the same shouldn’t be disallowed: ITAT Jaipur

Conclusion: Provisions for expenses were not automatically disallowed for charitable trusts, especially when they were not claimed as applied income. AO should consider the nature of the provision and whether it had been utilized for non-charitable purposes before making any disallowance. Rectification Order passed under section 154 for disallowing Provision for Expe

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