TaxTMI 
TaxTMI 
2014 (8) TMI 1119
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....on of Rs. 30,67,680/- be deleted. 2. (a) On the facts and in the circumstances of the case, the learned assessing officer and the CIT(A) erred in holding that, there is a breach of section 11(5) read with section 11(2) and therefore, provisions of section 13(1 )(d) of the Act is applicable and therefore , forfeiture of exemption of the section 11 of the Act. (b) The appellant prays that, the appellant has not breached the provisions and conditions required for claiming exemption u/s. 11 of the Act. (c)The appellant prays that, the exemption withdrawn being bad in law it should be allowed. 3. (a) On the facts and in the circumstances of the case, the learned assessing officer and the CIT(A) erred in rejecting the claim of Rs. 2,26,21,694/- on account of depreciation which should be allowed in full. (b) The appellant prays that, the claim of deprecation is not double deduction. (c) The claim of depreciation is on the assets which has to be fully allowed as the application of income. (d) The appellant prays that, the learned assessing officer erred in rejecting the claim made on account of depreciation which should be allo....
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....page 1 of the paper book, which for the sake of convenience is reproduced below: Statement of Development Fund in Institutions As on 31.03.2007 A.Y. 2007-08: Institutions O/p.Bal. Addition Cl. Bl. Remark Shah & Anchor Kutchhi Engg. College 0 7825500 7825500 The amount of Rs. 1,30,96,500/- has been added and taxed in assessment as per order dated 30/11/2009 Shah & Anchor Kutchhi Polytechnic 0 5271000 5271000 13096500 13056500 As on 31.03.2008 A.Y. 2008-09 Shah & Anchor Kutchhi Engg. College 7825500 5720000 13545500 The amount of Rs. 1,43,56,000/- (includes Rs. 1,23,56,000/-) have been added and taxed in assessment as per order dated 13/12/2010 Shah & Anchor Kutchhi Polytechnic 5271000 6636000 11907000 13096500 12356000 25452500 As on 31.3.2009 A.Y. 2009-10 Shah & Anchor Kutchhi Engg. College 13545500 3806260 17351760 Added entire amount outstanding to the credit in B/sheet Rs. 3,00,67,680/- instead of received during the year i.e. Rs. 46,15,180/- ....
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....submitted that due to inadvertence and lack of awareness of the law on the subject on the part of the Trust management, it was on account of bona-fide error. Reference was made to the decision of Hon'ble Delhi High Court in the case of Director of Income Tax (E) vs. Agrim Charan Foundation, 253 ITR 593, wherein the Charitable Trust had made deposits with S.M Finance Ltd. and Unitech Ltd. which were not Public Sector Undertakings. The AO observed that such investment was in violation of the provisions contained in section 11(5) and he denied the exemption to the assessee. The Tribunal allowed the relief to the assessee keeping in view the fact that since incorporation, the assessee was carrying charitable work and the donations were obtained by account payee cheques and corpus funds were invested as fixed deposits with Public Sector Undertakings; in the application forms it was mentioned that these concerns are authorized to accept deposits from Charitable Trusts and deposits were made; the fact that assessee upon becoming aware of the violation immediately withdrawn the amount from those two concerns. It was held by their Lordships that Tribunal did not commit any error in holding ....
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....nal was held to be right in accepting the claim of the assessee. 5.3 So far as it relates to mutual fund investment in Canara Robeco it was submitted by Ld. AR that the said investment of the assessee is permissible investment as per Rule 17C(i) which provide forms or mode of investment or deposit by a charitable or religious trust or institution and investment in units issued under any scheme of mutual fund referred to in clause (23D) of Section 10 of the Act is included. He submitted that such investment by the assessee is not in violation of section 11(5) r.w.s. 13(1)(d) of the Act. 5.4 Thus, it was submitted by Ld. AR that Ld. CIT(A) has erred in not accepting the claim of the assessee u/s. 11 of the Act. 6. On the other hand, Ld. DR submitted that the deposit of the assessee with Tata Motors Ltd. was in clear violation of section 11(5) r.w.s. 13(1)(d). Such investment by the assessee was not permitted, therefore, Ld. CIT(A) has rightly held that assessee is not entitled to get exemption under section 11 of the Act. He submitted that the account statement of Canara Bank for Canara Robeco mutual fund units were not submitted to AO. Therefore, he submitted that these gro....
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....any thereby making the assessee to invest under wrong notion, is bad in law contrary to the Judgment of the Delhi High Court in the case of Director of Income Tax (Exemption) vs. Agrim Charan Foundation reported in 253 ITR 593?" The question was decided by their Lordships as under: 6. Having heard the counsel for the parties, we notice the following undisputed facts in this appeal: 7. The assessee is created only for the purpose of Charity and doing yeoman services to the society. It is also not disputed by the revenue that exemption under Section 11 of the Act was granted for earlier assessment period and for subsequent assessment period except for assessment year 1995-96. The same has been rejected only on the ground that investment made under three financial institutions are contrary to .Section 11(5) of the Act. The explanation offered by the Assessee that it had invested on account of the inadvertence and on the mis-representation of those financial institutions has been rejected by the Assessing Officer and the same has been affirmed by the Commissioner of Income tax before the Tribunal. Though the Judgment of the Delhi High Court was relied upon, the Tri....
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.... 11 shall inter -alia include investment in the units issued under any scheme of mutual fund referred to in clause (23D) of section 10 of the Act. According to the Key Information Memorandum submitted before us Canara Robeco mutual fund has described regarding the application of tax provisions as follows: "The entire income of the Mutual Fund is exempt from income tax in accordance with the provisions of sec.10(23D) of the Income Tax Act, 1961. The income received by the Fund is not liable for deduction of tax at source. According to the said "Key Information Memorandum" a charitable trust/Wakfs or a society established under the relevant laws and authorized to invest in mutual fund schemes is one of the entity who could apply for the same. Keeping in view these provisions, the said investment by the assessee shall not in violation of section 11(5), therefore, there is no violation on account of that deposit. 7.2 Therefore, Ground No.2 & 5 are allowed in the manner aforesaid. 8. Apropos ground No.3, benefit of depreciation has been disallowed only on the ground that it will provide double benefit to the assessee as investment in the assets on which depreciation is....