21 December 2022
Religious Society not registered u/s 12A earlier has applied for provisional registration and provisionally registered in Dec2022 from AY-2023-24 to AY-2025-26.(not yet filed 10AB) and and doing charitable activities from 10-15 last years.
Society has no business and only income from donations from general public as well as community .
In case now wants to file ITR-U for last years and ITR for AY-22-23 to show income from Donation and corresponding expenditure.
Whether ITR 5 is to be used showing
1)Donation (under income from other sources) and claiming expenses u/s 57.
2)Donation (under income from business) and claiming expenses as per Income & Exp Account.
OR
3) To file ITR-7 on the basis of provisional registration received now for last years ITRs.
22 December 2022
1 No expenses can be claimed against donation as it's not spent for getting donation. 2 Donation can't be considered as business income. 3 ITR 7 can be filed for the years for which provisinal registration granted not for previous years.
22 December 2022
The expenditure incurred is directly connected with the donation received in as much as assessee received the donation only because the donors were satisfied that assessee is incurring the expenditure as per its objectives. Hence, the gross receipts cannot be taxed as income. Only the net surplus can be charged to tax. Case Name : Kund Kund Kahan Digamber Jain Versus Mumokshu Ashram Bajaj Palace Vs. ITO (ITAT Jaipur)
Kindly share any other case law in favour of asseessee.
CAclubindia
