Standard Deduction u/s Section 24(a) Cannot Be Claimed If Income is Subject to Application u/s 11 | ITAT
- Blog|News|Income Tax|
- 1 minute
- By Taxmann
- |
- Last Updated on 4 November, 2023
Latest from Taxmann
Case Details: Amalsad Vibhag Kelvani Mandal vs. ITO - [2023] 156 taxmann.com 70 (Surat-Trib.)
Judiciary and Counsel Details
-
- Pawan Singh, Judicial Member
- Akshay Modi, C.A. for the Appellant.
- S.M. Keshkamat, CIT-DR for the Respondent.
Facts of the Case
The assessee was a Trust registered under Section 12A, and its income is subject to the provisions of Sections 11, 12, and 13 of the Act. During the year under consideration, the assessee earned rental income from the properties of the trust. While furnishing the return of income, the assessee claimed a standard deduction under section 24(a) of the Act.
Upon such observation, the Assessing Officer (AO) contended that sections 11, 12, and 13 are special provisions. Accordingly, the AO denied standard deduction under Section 24(a) of the Act.
On appeal, CIT(A) confirmed the action of AO. Aggrieved by the order, the assessee filed an appeal to the Surat Tribunal.
ITAT Held
The Tribunal held that the income of the assessee is subject to the application of Sections 11, 12, and 13 of the Act, which has an overriding effect on the general provisions of the Income Tax Act. By section 11, the income of the trust is exempt. The basic concept of this Section is the gross receipt and its application. Thus, standard deduction under Section 24(a) cannot be allowed as the income of assessee is subject to application under Sections 11 and 13 of the Act.
Accordingly, the assessee’s appeal was denied.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
