2018 (6) TMI 685

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....ainst the view of the learned CIT(A) that the amended provisions of section 2(15) of the Income-tax Act, 1961 (hereinafter also called `the Act') are not applicable to the assessee. Briefly stated facts of the case are that the assessee filed its return declaring Nil income, after claiming exemption under sections 11 and 12 of the Act. During the course of assessment proceedings, the Assessing Officer observed that the assessee was engaged in the activity of development and sale of land and related activities. Such activities were held to be in the nature of `Business'. The Assessing Officer opined that after amendment in section 2(15) w.e.f. 1.4.2009, the activities of the assessee in land development and selling the same constituted `Busi....

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....h the relevant discussion has been made from pages 2 to 7 of the order. Since the facts and circumstances of the instant case are mutatis mutandis similar to those as considered and decided by the Hon'ble Jurisdictional High Court in the case of Yamuna Expressway Industrial Development Authority (supra) and the Tribunal in Moradabad Development Authority (supra), we uphold the impugned order in deciding this issue in assessee's favour. This ground is not allowed. 4. Second ground is against deletion of addition of Rs. 2,25,500/-. The Assessing Officer, on examination of account books, gathered that a sum of Rs. 2,25,500/- was debited twice under the head `Office expenses'. When pointed out, the assessee submitted that it was an uninten....

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....A) in the impugned order including the judgment of the Hon'ble Bombay High Court in CIT vs. Institute of Banking Personnel Selection 2003 264 110 (Bombay) in which it has been held that : `Income derived from the trust property has also got to be computed on commercial principles and if commercial principles are applied then adjustment of expenses incurred by the trust for charitable and religious purposes in the earlier years against the income earned by the trust in the subsequent year will have to be regarded as application of income of the trust for charitable and religious purposes in the subsequent year in which adjustment has been made having regard to the benevolent provisions contained in s. 11 of the Act and that such adjustme....

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....,37,804/- made by the Assessing Officer on account of interest. Briefly stated the facts of this ground as recorded in para 10 of the assessment order are that in support of payment of interest to GDA, the assessee filed copies of vouchers from which it transpired that loan of Rs. 5 crore was repaid through cheques. These vouchers did not reflect / mention any payment of interest claimed to have been paid to GDA. The Assessing Officer made disallowance of interest of Rs. 3,87,37,804/-. The learned CIT(A) deleted the addition by observing in para 8 of the impugned order that interest of Rs. 3.87 crore was claimed by the assessee during the course of assessment proceedings and the same was not claimed as an expenditure in the Income and expen....