A 12A Register trust received notice from income Tax Department for the FY 17-18 with disallowed the deduction following
(I) AMOUNT APPLIED DURING THE PREVIOUS YEAR - REVENUE ACCOUNT (24 OF SCHEDULE ER)
(ii) AMOUNT APPLIED DURING THE PREVIOUS YEAR–CAPITAL ACCOUNT [EXCLUDING APPLICATION FROM BORROWED FUNDS] (8A OF SCHEDULE EC)
which we have claimed for the Deduction for utilization for the Trust activity and assets but the ITD disallowed and issued notice to the Trust with demand.
The Trust rectified u/s154 but the same demand is still in 154 order passed by ITD.
Now my question is what to do next against 154 Order and any way to rectify again in Online Website.
12 October 2019
You have to get the information why the disallowed was made for Expenses. However since the expenses was made from Borrowed Fund, you have no right to claim that expenses. Since this is the excess expenses in relation to income, you will be entitle for deduction in the following year.
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