Standard Deduction u/s Section 24(a) Cannot Be Claimed If Income is Subject to Application u/s 11 | ITAT
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Case Details: Amalsad Vibhag Kelvani Mandal vs. ITO - [2023] 156 taxmann.com 70 (Surat-Trib.)
Judiciary and Counsel Details
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- 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.
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