TaxTMI 
TaxTMI 
2015 (6) TMI 233
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....hich are allowed for a normal association of persons also. 3. The learned Assessing Officer has erred in not allowing the expenses incurred for basic accounting matter of Auditing of Rs. 15,750.00. 4. The learned Assessing Officer has erred in disallowing the depreciation as per the Income-tax Act, 1961 to the tune of Rs. 42,641.30, which is bad in law and fact. 5. The learned Assessing Officer has erred in enhancing the taxable income without any valid reasons. ITA No. 1920/Del/2011 (A.Y. 2003-04): 2. The assessee has questioned following action of the authorities below: i) in determining the deficit at Rs. 1,73,140 as against returned deficit of Rs. 12,28,708; ii) in denying exemption claimed under section 11 and 12 of the Income-....
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....sment years under consideration wherein the Assessing Officer following its order for assessment year 2001-02 has denied the claimed expenditure. No other issue raised in the above grounds has been pressed. 4. The Learned Sr. DR has placed reliance on the orders of the authorities below. 5. Having gone through the orders of the authorities below as well as the order dated 21.10.2013 of the ITAT rectifying its earlier order dated 30.4.2008 vide MA No.66/Del/2012 for the assessment year 2001-02. We find that the ITAT has decided an identical issue as under: "6. Coming to the issue as to whether the mistake apparent on record has crept into the order of the Tribunal on the issue of mode of computation of income, i.e. category (B), we find t....
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....ee was concerned, construction of houses, reclamation of land , etc. were part of its regular activities. Houses were built on the land of poor agriculturists. The assessee-society had no legal title or right over the land or houses of those villagers/agriculturists who were the beneficiaries. The purpose and activity of the assessee-society was to engage in such charitable activities. Whatever amount had been spent on those programmes/projects it was spent in the usual course of carrying on its acclaimed hold that the amounts spent by the assessee in constructing houses or reclaiming land were capital expenditure. As far as the assessee was concerned, those expenses were revenue expenses. The assessee had no right or title over those prope....
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.... in the personal account of the donor and any amount spent against that grant should have been debited to that separate account of the donor. That incoming and outgoing need not be reflected in the income and expenditure account of the assessee. At the end of the project, the balance, if any, available to the credit of the donor, could be treated as income of the assessee, if the donor did not insist for the repayment of the balance amount. Therefore, the Assessing Officer was to be directed to re-do the assessment on the following lines : (1) The tied-up grants received from the donor, Bread for the World, will be taken out of the computation of income from the income-side. (2) All the money spent under the tied-up programmes directed b....
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....as to treat the money as capital to be spent for the Ladnu Water Supply Scheme. It was of no significance whether the amount had since been paid to the State government or kept in the account of the said scheme by the assessee-trust. The amount of Rs. 70,000 did not constitute income of the petitioner. The reassessment proceedings were not valid and were liable to be quashed." This Bench of the Tribunal in the case of Arya Vysya Abhyudaya Sangham (supra) for assessment year 1998-99, in its order dated 25-6-2002 to which one of us was a party was inclined to uphold the view of the Commissioner (Appeals) in that case by holding in para 15 of that order as follows : "Though we find considerable force in the other argument of the assessee's c....