The Society of Helper of Mary vs. Assessing Officer

Parties Involved

Facts Summary

The assessee, a charitable organization registered under Section 12A of the Income-tax Act, filed its return of income for the Assessment Year 2016-17 on 01/10/2016 declaring Nil income. During the assessment proceedings, the Assessing Officer noticed that the assessee had claimed a donation of Rs.2,94,55,835/- given to other public trusts as application of income and had also claimed expenditure towards its charitable objects. The Assessing Officer disallowed the donation and made an ad hoc disallowance of 25% of the balance expenditure due to the absence of supporting details. The assessee appealed against the assessment order to the Commissioner of Income Tax (Appeals), who dismissed the appeal for non-prosecution. The assessee then filed an appeal before the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Dismissal without adjudication
• 2. Violation of Principles of Natural Justice and Arbitrary Assessment
• 3. Erroneous Disallowance of Donation (Application of Income u/s 11)
• 4. Arbitrary and Ad-hoc Disallowance of 25% of Expenses
• 5. Invalid Rectification u/s 154 for Applicability of Section 167B
• 6. Unjustified Levy of Interest under Sections 234B and 234C

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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