TaxTMI 
TaxTMI 
2012 (9) TMI 370
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.... 2. The appellant craves leave to add, to alter or amend any ground of appeal raised above at the time of hearing." 2. Facts, in brief, as per the relevant orders are that return declaring income of Rs.1,92,16,940/- filed on 29-09-2009 by the assessee, providing consultancy of automotive components, was selected for scrutiny with the service of notice u/s 143(2) of the Income-tax Act, 1961 (herein after referred to as the 'Act']) issued on 16.09.2010.During the course of assessment proceedings, the Assessing Officer[AO in short] noticed that though assessee was registered u/s 12A of the Act, it did not claim exemption u/s 11 of the Act in view of insertion of proviso to section 2(15) of the Act introduced by the Finance Act, 2009 w.e.f ....
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....he aforesaid findings of the ld.. CIT(A). The ld. DR while relying upon the decision dated 16.11.2011of the ITAT Cochin Bench in the case of DDIT(E) vs. Adi Sankara Trust, 12 taxmann.com 105 (Cochin) supported the order of the AO while the ld. AR on behalf of the assessee merely relied upon the findings in the impugned order. 5. We have heard both the parties and gone through the facts of the case. Indisputably, even though the assessee is registered u/s 12A of the Act, it did not claim benefit of provisions of sec. 11 & 12 of the Act in view of insertion of first proviso to section 2(15) of the Act introduced by the Finance Act, 2009 w.e.f 01.04.2009. The assessee itself determined income in the computation of income under the head 'Pro....
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....l Ranchhoddas Vishram Bhawan Trust(supra) in the AY 1971-72 & 1972-73,Framjee Cowasjee Institute(supra) and Institute of Banking(supra)in the AY 1984-85. Following the view taken by the Hon'ble Madras & Madhya Pradesh High Courts, Hon'ble Punjab & Haryana High Court held in Market Committee Pipli (supra) in the AY 2005-06 that the income of the assessee being exempt, the assessee is only claiming that depreciation should be reduced from the income for determining the percentage of funds which have to be applied for the purposes of the trust and that there is no double deduction claimed by the assessee. While relying upon the decisions in Dr. R.L. Khera Charitable Trust and International Goudia Vedanta Trust, ITA no.2920/Del/ 2011 in the AY ....
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.... an institution is engaged in advancement of any other object of general public utility and postulates that such an institute is not "charitable" if it is involved in carrying on any activity in the nature of trade, commerce or business or any activity of rendering any service in relation to any trade, commerce or business. The second part, "any activity of rendering any service in relation to any trade, commerce or business" obviously intends to expand the scope of the proviso to include services, which are rendered in relation to any trade, commerce or business. The proviso further stipulates that the activity must be for a cess or fee or any other consideration. The last part states that the proviso will apply even if the cess or fee or ....
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....t or both under sections 32(1)(ii) and 35(1)(iv) of the Act. The assessee therein had incurred expenditure of a capital nature on scientific research relating to the business which resulted into acquisition of an asset. The assessee sought to claim a specified percentage of the written down value of the asset as depreciation and at the same time claimed deduction, in five consecutive years of the expenditure incurred on the acquisition of the asset. The Hon'ble Apex court observed (headnote) : "Where a capital asset used for scientific research related to the business of the assessee is also ipso facto an asset used for the purpose of the business, it is impossible to conceive of the Legislature having envisaged a double deduction in res....
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....s of the rules of natural just ice, namely, that every judicial/quasi-judicial body/authority must pass a reasoned order, which should reflect application of mind by the concerned authority to the issues/points raised before it. The application of mind to the material facts and the arguments should manifest itself in the order. Sect ion 250(6) of the Act mandates that the order of the CIT(A) while disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reasons for the decision. The requirement of recording of reasons and communication thereof by the quasi-judicial authorities has been read as an integral part of the concept of fair procedure and is an important safeguard to ensu....