https://www.taxtmi.com/caselaws?id=763477 ITAT Kolkata denied exemption u/s. 11 to an assessee organization engaged in infrastructure development for government. The tribunal held that registration u/s. 12A applied in 2019 could not grant retrospective benefit for AY 2012-13 as assessment was already completed and the relevant proviso to section 12(2) was omitted w.e.f. 01.04.2023. Infrastructure expenditure was correctly treated as capital in nature, though maintenance costs remain revenue expenditure. The tribunal directed the assessee to rectify accounting treatment of government grants wrongly recorded as loans with notional interest. Revenue's appeal was partly allowed. en-us Wed, 18 Dec 2024 00:00:00 +0530 Fri, 20 Dec 2024 08:46:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=763477 ITAT Kolkata denied exemption u/s. 11 to an assessee organization engaged in infrastructure development for government. The tribunal held that registration u/s. 12A applied in 2019 could not grant retrospective benefit for AY 2012-13 as assessment was already completed and the relevant proviso to section 12(2) was omitted w.e.f. 01.04.2023. Infrastructure expenditure was correctly treated as capital in nature, though maintenance costs remain revenue expenditure. The tribunal directed the assessee to rectify accounting treatment of government grants wrongly recorded as loans with notional interest. Revenue's appeal was partly allowed. Case-Laws Income Tax Wed, 18 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=763477