TaxTMI 
TaxTMI 
2012 (11) TMI 93
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....his amount is neither accumulated nor the A.O. intimated of such accumulation, there is violation of Section. 11(2) & 11(5) of the IT Act. This amount was held as revenue by ld.CIT(A) but this was not adjudicated upon by Hon'ble I.T.A.T. In the light of the submission made above, it should be held as revenue receipt and as a corollary to that as there is violation of section 11(2) and section 11(5) of the ILT Act, the claim of deduction should be withdrawn or at least Rs. 1.38 crores of development fund should be held taxable in A.Y.04-05 and likewise in other years also corresponding amounts should be taxed." 3. On the other hand, the Ld.Counsel for the assessee furnished a detailed chart giving parawise reply of the objections raised in the rectification application filed by the Revenue duly indicating para number/page number of the order of the Tribunal wherein each and every issue has been discussed. 4. We have gone through the Miscellaneous Application and find that the issue, under consideration, has been decided by the Tribunal after having made the following observations :- "19. We have considered the rival contentions, carefully gone through the o....
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....ment year 2003-04 under consideration. He assessed the income of trust under regular provisions of the Income-tax Act, 1961, i.e. Section 28 to 44. As discussed hereinabove, the Tribunal has allowed the registration to the assessee trust with the date of its inception and the Chief CIT has issued fresh certificate u/s 12A on 12.3.2007 granting registration to the trust w.e.f. 13.1.1999, the date when the trust was formed. Taking into consideration the fresh registration granting w.e.f. 13.1.1999, the ld. CIT(A) after considering all the facts and circumstances of the case, allowed the exemption to the assessee's income u/s 11 to 13. Thus, the addition of Rs. 1,55,01,050/-due to non allowance of exemption u/s 11 & 12 was deleted by the ld. CIT(A). The ld. CIT(A) has elaborately discussed the submissions made before him and also the observation of the AO. Similarly, the disallowance out of lab and practical equipments/consumables, and in respect of expenses of the trustees, the ld. CIT(A) has dealt in detail in the appellate order for assessment year 2004-05 and after proper examination of the facts of the case and legal position, granted due relief to the assessee. 21. In ....
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.... objects no.12 on page 52 of the compilation filed before him with regard to disallowance of Rs. 3,02,965/- with respect to expenditure on lab and practical equipments/consumables, we found that LNCT College had spent Rs. 20.19 lakhs on account of lab and practical equipments/consumables. The AO has disallowed 15 % of purchases on the plea that audit report u/s 142(2A) mentioned regarding non-verifiability of some of the expenses and that no bifurcation was available as to the expenses on purchases of equipments vis-à-vis purchase of consumables. The ld. CIT(A) has recorded a categorical finding to the effect that all these expenses were duly recorded in the regular books of account maintained by the assessee and the same was fully vouched and produced before the auditor at the time of regular audit. As discussed above, due to change in the staff, different files in which these vouchers were placed could not be located. Accordingly, it was held that estimated disallowance was wrong and uncalled for. Similarly, addition of Rs. 3,01,000/- was made on the plea of personal expenses of the trustees. In this regard, we found that the residence of the Managing Trustee was situated ....
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....nterest (not considered in total expenses) (Page 24 of compilation) 85,43,019 Excess application of income (-)2,65,716 Subject to other notes/claims for calculating accumulation of income as per statement enclosed. 24. In view of the above, we do not find any infirmity in the order of the CIT(A) for deleting the addition of Rs. 2.26 crores made by the Assessing Officer. 25. In the assessment year 2004-05, the Revenue has raised similar issue with regard to allowing exemption u/s 11, deletion of addition on account of lab and equipment consumables, depreciation on lab and equipment and also deleting of expenses alleged to be on personal account of the trustee. By observing that the assessee trust was running for educational colleges, the income of the assessee trust having derived solely from these educational institutions and its activities were not for profit, the CIT(A) allowed exemption u/s 11. The CIT(A) also recorded a categorical finding that the assessee trust has been granted registration u/s 12A by verifying its object and activities of educational colleges, run by it. These findings have not been controverted and t....
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....he assessee trust for the benefit given to the trustee within the meaning of Section 13(3). However, in the instant case before us, we found that no personal benefit was given to the trustee, thus, the conclusion drawn in the case cited by the ld. CIT DR is not applicable to the facts of the instant case. 30. The ld. CIT DR also relied on the decision of Hon'ble Madras High Court reported at 246 ITR 164. In this case, the AO invoked provisions of Section 13(1)(c) in regard to the payments made to its office bearer and the exemption claimed u/s 11 was declined. However, in the instant case before us, as observed above, no personal benefit was given to the office bearer, therefore, this case is of no help to the Revenue. 31. Reliance was also placed by the ld. CIT DR on the decision of Hon'ble Supreme Court reported at 82 ITR 540, wherein reference was declined in view of the finding of fact arrived at by the Tribunal. It was observed by Hon'ble Supreme Court that it is within the province of the Tribunal to accept recitals in the trust deed unless the conclusion is shown to be perverse or based on irrelevant materials. It was held that High Court cannot interfere with the find....