TaxTMI 
TaxTMI 
2018 (5) TMI 235
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....ake up separately. The penalty u/s. 271(1)(c) arising out of the ITA Nos. 621&91/Asr/2015&2017 impugned assessment, the same is also being adjudicated per a common, consolidated order. Quantum Proceedings: 2. The brief facts of the case are that the assessee is a society registered under the Societies Registration Act, 1860 on 14.01.2005. It is running two units, i.e., 'Baba Farid Kindergarten School', and also manages Tilla Baba Farid Shrines, maintaining separate books of account for each of them. The surplus for the school for the relevant year, disclosed at Rs. 77.02 lacs, was claimed and allowed exempt u/s. 10(23C)(iiiad); the gross receipt - at Rs. 86.01 lacs, being less than Rs. 100 lacs. The Gurdwara receipt was claimed exempt u/....
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.... the following grounds: '1. That as per peculiar facts and circumstances of the case, the order of ld. CIT(A) is defective both in law and facts and is liable to be set aside. 2. That as per peculiar facts and circumstances of the case, the ld. CIT(A) has erred in holding that benefit of section 11 & 12 of the Income Tax Act, 1961, cannot be allowed in appellate proceedings, as the assessment proceedings stands concluded as soon as the assessment order is passed by AO, whereas the proceeding pending before ld. CIT(A) are a continuation of the assessment proceedings ; is not concluded. [Reliance is placed on National Thermal Power Corporation Ltd. v. CIT (1998) 229 383 (SC)] 3. That ld. CIT(A) has erred in not allowing depreciation o....
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....ed (by the amount of depreciation). Further, the assessee is equally entitled to claim capital expenditure, including on acquisition of capital assets, as a part of application of income. We state this in-as-much as exemption under section 11 is only on the basis of application of income, and not otherwise, and on which aspect we observe no finding by the AO. With regard to the legal issue, we, again, find the assessee's claim acceptable. No doubt registration is a condition precedent for sections 11 and 12 to apply (refer section 12A(1); UP Forest Corporation & Ors. v. CIT [2008] 297 ITR 1 (SC)). However, even where granted subsequent to the assessment, as in the present case, an assessee cannot, given the scheme of the Act, be denied the....
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....... (7) Where a trust or an institution has been granted registration under clause (b) of subsection (1) of section 12AA or has obtained registration at any time under section 12A [as it stood before its amendment by the Finance (No.2) Act, 1996 (33 of 1996)] and the said registration is in force for any previous year, then, nothing contained in section 10 [other than clause (1) and clause (23C) thereof] shall operate to exclude any income derived from the property held under trust from the total income of the person in receipt thereof for that previous year.' Accordingly, it becomes impermissible in law for the assessee to claim the benefit of section 11 on a part of the property held under trust (i.e., the unit controlling and managi....