TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Assessee's Appeal Partly Allowed: Grounds Dismissed, Additions Accepted with Evidence</h1> <h3>M/s. Gujrati Mahamandal Hati Bhata Versus The ITO (Exemption) Ajmer</h3> M/s. Gujrati Mahamandal Hati Bhata Versus The ITO (Exemption) Ajmer - TMI Issues Involved:1. Admissibility of appeal against the order passed u/s 143(3) IT Act.2. Addition of Rs. 2,580,033/- and charging tax thereon.3. Addition of Rs. 881,362.50 as corpus fund for building construction.4. Addition of Rs. 215,235/- for surplus of students' funds.5. Disallowance of corpus donation of Rs. 108,340/-.6. Disallowance of capital expenditure on account of Inverter Rs. 14,000/-.7. Treatment of fixed deposits as capital assets.8. Denial of exemption benefit u/s 10(23C)(iiirad) against section 11.9. Misplacement of Form 10 by the department.10. General grounds on the legality of the order.11. Additional grounds not taken at CIT (Appeal).Summary:Issue 1, 2, 10 & 11: Admissibility and General GroundsThe Bench noted that Ground Nos. 1, 2, 10 & 11 were general in nature and did not require adjudication. The ld. AR raised no arguments on these grounds, leading to their dismissal.Issue 3: Addition of Rs. 881,362.50 as Corpus FundThe assessee claimed this amount as a corpus fund for building construction. The CIT(A) confirmed the addition due to lack of evidence showing it was received with a specific direction for the corpus fund. The assessee did not press this ground during the hearing, leading to its dismissal.Issue 4: Addition of Rs. 215,235/- for Surplus of Students' FundsThe CIT(A) confirmed the addition, stating the surplus was not included in the consolidated accounts. However, the Bench found the submission that the surplus could not be utilized at the discretion of the Management but was controlled by the Head of the Institution for student welfare to be appropriate. Thus, this ground was allowed.Issue 5: Disallowance of Corpus Donation of Rs. 108,340/-The CIT(A) confirmed the addition due to incomplete addresses of donors. During the hearing, the assessee provided donor confirmations. The Bench allowed this ground based on the confirmations.Issue 6: Disallowance of Capital Expenditure on Inverter Rs. 14,000/-The CIT(A) confirmed the addition due to lack of documentary evidence. The assessee provided details of the payment made through cheque for the inverter. The Bench allowed this ground based on the provided evidence.Issue 7 & 8: Treatment of Fixed Deposits and Denial of ExemptionThe CIT(A) justified the taxation of net surplus and denial of exemption u/s 10(23C)(iiirad) due to failure to apply 85% of total receipts and non-submission of Form 10. The Bench dismissed these grounds as they were not tenable in law.Issue 9: Misplacement of Form 10The assessee claimed Form 10 was misplaced by the department during file transfer. The Additional Commissioner had directed the AO to consider the benefit after reviewing the Resolution. The Bench restored this issue to the AO to act as per the Additional Commissioner's instructions, allowing this ground for statistical purposes.Conclusion:The appeal of the assessee was partly allowed for statistical purposes. The order was pronounced in the open court on 24/08/2023.
TaxTMI 