2015 (9) TMI 1352

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ng effective grounds of appeal:- 1. That on the facts and in the circumstances of the case the learned commissioner of Income Tax (Appeals) erred in not holding that the income of the appellant being exempt u/s.10(23C)(vi) of the IT Act and therefore the learned ITO was not correct in applying the provisions of Sec. 11 while completing the assessment for the year. 2. That without prejudice to ground No. 1 above though presuming but not admitting that provisions of Sec. 11 of the I.T. Act 1961 are applicable, even then the learned Commissioner of Income Tax (Appeals) erred in not accepting the appellant's entire claim under the provisions of Sec. 11(IA) in respect of reinvestment in capital assets for the purpose of determining the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....17,66,21,082/- Rs.17,66,21,082/-   Rs. 2,64,93,162/- Rs.15,01,27,920/- Less: Income applied for charitable   Purpose as shown in I&E a/c.. Rs.16,90,81,042/-   Less: Not treated as application Rs.2,81,64,885/- Rs.14,09,16,157/-   Less : Capital expenditure.................................. Rs.  92,11,763/- Rs.  44,30,340/- Rs.  47,81,423/- Total income............................. Rs. 47,81,423/-".   Before the Assessing Officer, the assessee had also submitted that it had applied for renewal of exemption under section 10(23C)(vi) for a period of three years from 2007-08 on 21.01.2009, which was still pending before the authority. However, ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... that the investments disposed of being its capital assets held under Trust wholly for charitable purposes and the net consideration from such disposal having been utilized for acquiring other capital assets held under Trust wholly for charitable purposes, the capital gains arising from such disposal of the original investments were required to be treated as applied to charitable purposes in terms of section 11(1A) of the Act to the extent specified there under. The assessee had submitted copies of the audited accounts of the assessee and a statement showing reinvestment of the proceeds from transfer of capital assets during the previous year relevant to the assessment year 2007-08. The assessee's claim was that it utilized the whole of the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... real issue is capital gain amounting to Rs. 19,611/- related to the sale proceeds of Rs. 5,11,157/- and not Rs. 1,34,233/-. Be that as it may, the main issue is whether the Assessing Officer's plea of holding the investments till the end of the financial year, which was accepted by the ld. CIT(Appeals), needs to be considered in the light of the provisions of section 11(1A). The provisions of section 11(1A) are reproduced hereunder:- "11(1A) for the purpose of sub-section (1),- (a) Where a capital asset, being property held under trust wholly for charitable or religious purposes, is transferred and the whole or any part of the net consideration is utilised for acquiring another capital asset to be so held, then, the capital gain aris....