2012 (5) TMI 593

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....of Section 13 are applicable. It is submitted that on the same issue, Hon'ble I.T.A.T. has allowed the appeal for assessment year 2004-05 but the ld. CIT(A) has not followed the same. The order of the CIT(A) has been passed in total disregard to the principles of judicial discipline which requires that the orders of the higher appellate authorities should be followed unreservedly by the sub ordinate authorities. 2. That on the facts and in the circumstances of the case, the ld. CIT(A) erred in confirming the addition of Rs. 3,04,09,185/- being excess of income over expenditure treating the same as taxable by holding that the society has infringed the provisions of Section 13 and thereby disallowing the exemption available to the asse....

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....of section 13 on account of interest free loan given to following three associates :- (a) Pyramid Education Society Rs. 69,370/- (b) Shafali Education Society Rs. 15,75,000/- (c) RKDF Education Society Rs. 4,61,053/- 6. From record, we find that Shafali Education Society and RKDF Education Society are registered u/s 12AA, copy of registration certificate u/s 12AA of the Act was placed before the Assessing Officer which also finds place in the paper book. These are charitable societies engaged in providing education. Similar loans were given by the assessee society in the assessment year 2004-05 and the issue of decline of claim of deduction was before the Tribunal and the Tribunal vide its order dated 27th November, 2009 deci....

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.... under the M.P. Societies Registration Act, 1973 having the same objects of education. The amount of loan given to it was Rs. 69,370/-. The Commissioner of Income Tax (Appeals) has applied the provisions of section 13(3) read with section 13(2)(a) of the Act. For applying the provisions of section 13(3) of the Act, share in profit to the extent of 20% in that concern is necessary and in case of charitable society under the M.P. Societies Registration Act, 1973, there is no entitlement to share profit in such a society. Accordingly, we do not find any infringement of the provisions of section 13(3) of the Act for giving loan of Rs. 69,370/- to M/s Pyramid Education Society. We find that in the earlier year 2004-05 the loan of Rs. 5,17,775/- ....