2016 (11) TMI 1557

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....the addition of Rs. 15,15,89,376/-- since the assessee had claimed exemption u/s 10(23)(vi) whereas the exemption was granted by the worthy CIT(Exemption) Chandigarh vide order dated 01/03/2016 from A.Y. 2006-07 to A.Y. 2011-12. No exemption had not been granted for the A.Y. 2012-13. 2. That Worthy CIT(A) has erred in and circumstances of the case in deleting the addition made as even after granting of exemption u/s 10(23)(iv) of  the Income Tax Act. The accounts of the assessee have not reflecting he true affairs of the activities and such the exemption is not allowable to the assessee. 3. That Worthy Commissioner of Income Tax (Appeal) has erred on the facts and circumstances the case in deleting the addition of Rs.....

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.... authority but activities of the assessee board are charitable in nature as defined under Section 2 (15) of the Income Tax Act. After rejection of the application by CCIT, Panchkula, later on Hon'ble Punjab & Haryana High Court allowed for fresh order after considering the matter in its entirety. The CIT (Exemption) Chandigarh allowed the claim of the assessee for grant of exemption under section 10 (23C)(iv) of the Act vide order dated 01.03.2016 and exemption under above provisions was granted w.e.f. assessment year 2006-07 to 2011-12. The assessee further submitted that as per Circular No. 7/2010, the approval once granted after 01.12.2006 will be one time approval which would be valid until it is withdrawn. Since the assessee has be....

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....y capital expenditure claimed should not be disallowed. The assessee failed to furnish plausible explanation therefore, Assessing Officer considering it to be capital expenditure, disallowed under section 37 (1) of the Income Tax Act. 8. The assessee submitted before ld. CIT(Appeals) that it has not claimed capital expenditure in Income & Expenditure Account but had shown the revenue grants in the income side after reducing the amount utilized from grants for capital expenditure. It is also matter of fact that capital expenditure has not been charged to Profit & Loss Account so there is no question of disallowance. The 3rd proviso to provisions of Section 10 (23C) provides for "applies to its income wholly or exclusively to the objects f....