Educational Institute : Disallowances by AO
04 May 2021 A trust registered u/s 12AA as well as s. 10(23C) is running an educational institution for higher education. It has filed ITR 7 claiming exemption u/s 10(23C)(vi). In assessment proceedings u/s 143(3) the AO proposed disallowance u/s 13(1)(c) out of payments made to persons specified u/s 13(3) and also disallowance out of interest paid on borrowed funds for the reason that the assessee trust made advances to other educational institution free of interest. Kindly guide.
04 May 2021 Both the disallowances are in order as per the provisions of income tax.