2014 (2) TMI 175

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....ing the benefit of section 10(23C)(vi) of the Income Tax Act, 1961. 2. That the Ld. CIT(A) Alwar has erred in law as well as on the facts and circumstances of the case in deleting the addition of Rs. 1,42,785/- made by the Assessing Officer by disallowing out of vehicle expenses. 3. That the Ld. CIT(A), Alwar has erred in law as well as on the facts and circumstances of the case in directing the Assessing Officer to compute the income of the assessee at Nil." 2. First issue vide ground No. 1 relates to deletion of addition of Rs. 1,47,16,284/- made by the Assessing Officer by disallowing the benefit of Section 10(23C)(vi) of the I.T. Act, 1961 (hereinafter referred to as the Act) and vide ground No. 2, the grievance of the departme....

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....ciety found as under:- "i) Total receipt of school/society are Rs. 3,53,47,121/- which includes amount received by the school for tuition fees Rs. 1,90,36,545/- and other fee Rs. 1,47,75,740/- and out of such huge receipts the surplus generated by the assessee society is Rs. 95,81,822/-. ii) The society/school has invested in FDRs amounting to Rs. 90,85,551/- and it is earning huge interest income amounting to Rs. 12,78,446/- out of such investments. iii) The society is increasing its financial position by charging fees from the students year after year. iv) During the course of assessment proceedings books of accounts with regard to transport facility for students were produced by the A/R, which shows net surplus of Rs. 14,38,2....

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....cts of the society. The Ld. CIT(A) also pointed out that the written submissions made by the assessee were forwarded to the Assessing Officer, who vide his remand report, has stated that the figures of accumulation of income had been worked out in the assessment order without considering the application of income towards capital expenditure made during the year. The Ld. CIT(A) observed that the details of accumulation after considering the capital expenditure had been enclosed with the remand report, which revealed that the expenditure/application of income for the assessment year under consideration was 96.29% of the income/receipts. The Ld. CIT(A) by considering the remand report of the Assessing Officer and the submissions of the assesse....