TaxTMI 
TaxTMI 
2010 (1) TMI 794
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 2. That on the facts and in the circumstances of the case and legal position the Ld CIT(A) - XXI, New Delhi erred in confirming disallowance of application of funds under section 11(1)(a) to the extent of income assessed at Rs.3,62,223/- and other was passed:- i) without invoking circular No.100 dated 24.1.1973, and ii) after ignoring relevant evidence/material regarding repayment of loans, and iii) when no funds having been accumulated the appellant trust has no legal obligation oto file Form No.10. 3. Without prejudice to Ground No.2( above the ld CIT(A) -XXI, New Delhi has erred in confirming the claim of application of funds u/s 11(10(a) of Rs.1,00,000/- on account of claim of interest on unsecur....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... as reported in 88 (St). 66. It was submitted that this aspect was not decided by Ld CIT(A). Reliance was placed on the judgment of Hon'ble Karnataka High Court rendered in the case of CIT v. Cutchi Memom Union as reported in 155 ITR 51 and also on the judgment of Hon'ble Calcutta High Court rendered in the case of Ramchandra Poddar Charitable Trust as reported in 164 ITR 666. 4. Regarding ground No.3, it was submitted that in earlier years, such interest was allowed in the assessment order passed u/s 143(3) also. In this regard, our attention was drawn to a chart appearing on page No.63 of the paper book and it is pointed out that in assessment year 2003-04, assessment order was passed by the Assessing Officer u/s 143(3) and in tha....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ade by the assessee in the present year and whether such loan was taken by the assessee to fulfill one of the objects of the trust. We, therefore, feel that this matter should go back to the file of the ld CIT(A) for a fresh decision after examining this aspect of the matter and necessary facts. Ld CIT(A) should also consider various judgments cited by the assessee before us and after providing adequate opportunity of being heard to both sides, Ld CIT(A) should decide this issue afresh as per above discussion. We, order accordingly and restore this matter back to the file of the Ld CIT(A) for a fresh decision. 8. Regarding ground No.3, we find that for allowability of interest of loan also, it has to be seen as to whether such loans....