Held that the expenses were disallowed on ad hoc basis at 10 per cent. on total expenses without specifying any specific lacuna. Therefore, the Assessing Officer was directed to delete the disallowances. That “van rent” was in contra entry in both sides of income and expenditure accounts. After deduction of the amount from both sides, the turnover of the assessee was below Rs. 1 crore. The assessee was allowed the benefit under section 10(23C) of the Income-tax Act, 1961 (AY. 2015-16)
Baba Farid Public Welfare Society v. ITO (E) (2022) 99 ITR 339 (Amritsar)(Trib)
S. 10(23C) : Educational institution-Ad-hoc disallowance at 10 percent-Held to be not justified-Van Rent-Contra entry-After Deduction of amount from both sides, turnover of assessee is below Rs. 1 Crore-Entitled to benefit.