2018 (1) TMI 18

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....t inclined to accept the adjournment application filed for the Revenue and proceeding to dispose of the appeals on merits ex parte qua the Revenue. 3. The first issue raised in this appeal is against the sustenance of addition to the tune of Rs. 7,82,465/- on account of honorarium. 4. Briefly stated, the facts of the case are that the assessee is a registered society duly approved by the CIT, Meerut, but without there being any certificate for exemption u/s 80G of the Act. During the course of assessment proceedings, it was observed that out of gross receipts of Rs. 43,27,675/-, the assessee claimed salary of Rs. 21,72,890/-. Apart from salary, the assessee also claimed deduction for a sum of Rs. 7,82,465/- under the head 'Honorarium expe....

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....ce would meet adequately if the impugned order on this issue is set aside and the matter is restored to the file of Assessing Officer. I order accordingly and direct him to decide this issue afresh as per law, after allowing a reasonable opportunity of being heard to the assessee. 6. Ground No.2 is against confirmation of disallowance of Rs. 4,54,300/-, being, the amount of salary paid to family members of the management of the society. 7. The facts apropos this ground are that the assessee paid a sum of Rs. 1,38,000/- to Shri R.K. Gupta; Rs. 1,12,800/- to Smt. Kiran Gupta; Rs. 1,23,700/- to Shri Rohit Gupta; and Rs. 79,800/- to Miss Nidhi Gupta. Invoking the provisions of section 13(3) read with section 13(2), the Assessing Officer treat....

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....lowance. 10. It is observed from the assessee's submissions made before the authorities below that the cars were used by the society for its work of school. The assessee submitted that these cars were used for various purposes, such as, liaisoning with DIOS and CBSE Board etc. Such contentions have not been refuted with any cogent evidence except for the fact that no service of driver was availed and, further, the log book was not maintained. It is seen that the assessee society has used vehicles in the succeeding years as well for which no disallowance of depreciation has been made. In view of the foregoing discussion, I am satisfied that the ld. CIT(A) erred in sustaining the disallowance of depreciation and the same is directed to be de....

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.... say, the assessee will be allowed a reasonable opportunity of hearing. 13. The last ground is against the addition of Rs. 2,04,757/-. The Assessing Officer treated 'surplus' as income. The ld. CIT(A) noticed that the assessee was enjoying registration u/s 12A of the Act and its income was exempt u/s 11. Considering the application of income at 85%, the ld. CIT(A) held that the addition was not called for. However, on perusal of the details filed by the assessee for application of income, he observed that the assessee, inter alia, claimed incurring of capital expenditure of Rs. 2,04,757/- towards cost of construction of building and other capital assets, for which no details/evidence were given. This is how, surplus of Rs. 2,04,757/- was a....