TaxTMI 
TaxTMI 
2013 (10) TMI 1482
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....he appeals and cross-objections are directed against the order of the Commissioner of Incometax(Appeals)-XII at Chennai, dated 19.3.2012 and 6.8.2012 respectively. They arise out of the assessments completed under Section 143(3) of the Income-tax Act, 1961. 2. The assessee is a charitable institution, engaged in the activities of running educational institutions. The assessee is granted registration under Section 12A. Being a charitable institution, the assessee claimed relief under Section 11, in the return filed for the impugned assessment years. In the course of assessment proceedings, the Assessing Officer found that the assessee has violated the provisions of Section 13(1)(c) of the Income-tax Act, 1961....
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....manner. In assessment year 2009-10, the CIT(Appeals) examined the ledger accounts of all the concerned parties in a very detailed manner. He examined the personal accounts of the trustees and other related parties reflected in the accounts of the institution, going through opening balance, credits and debits during the concerned years and the closing balance. The Commissioner of Income Tax (Appeals) found that the assessee's way of accounting the transactions to receive the funds and pay back the funds to the specified persons, without netting of or squaring up, was only to facilitate a better understanding and to keep a track of transactions in a better manner. He ultimately held that the accounting of receipts and ....
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....trustee 'A', who had in fact given money to the assessee-Trust, the repayment was made to the trustee 'B' on the direction of the trustee 'A'. This adjustment made by the assessee has been treated as the most serious objection by the Revenue. But, the fact is that every receipt and payment of money had been properly explained. It is seen that the assessee-Trust received money as and when there was no cash available with it. Actually, the trustees were helping the assessee to carry on its activities, when there was a shortage of funds. So, whether the balance in the name of a particular trustee is to be considered as the net figure for all the transactions entered in the name of different trustees or have ....
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....Act, 1961. In computing of operational income of an assessee, it is necessary to provide for depreciation. Therefore, the income of the assessee-Trust is computed at the first instance by applying normal accountancy principles where depreciation has to be allowed. It is after providing the depreciation, the income of the assessee is arrived at. When the assessee has explained the application of funds for charitable purposes, the amount spent by the assessee to acquire the fixed asset is to be treated as application of funds for charitable purposes. 11. In the above circumstances, there is a misconception that an assessee, which is a charitable institution enjoying benefits under Section 11, is av....