2019 (11) TMI 507

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....bmissions of the assessee? 3. On the facts and circumstances of the case and in law, the ld. CIT(A) erred in deleting the addition of Rs. 25,625/- on account of non-deduction of TDS by holding that assessee trust was allowed the benefit of section 11 & 12 of the I.T. Act, 1961? 4. On the facts and circumstances of the case and in law, the ld. CIT(A) erred in deleting the addition of Rs. 5,00,000/- made u/s 68 of the Act? 5. On the facts and circumstances of the case and in law, the ld. CIT(A) erred in deleting the addition of Rs. 2,28,24,920/- on account of expenses claimed for investment in acquisition of fixed assets by holding that assessee trust was allowed the benefit of section 11 & 12 of the I.T. Act, 1961? 6. On the facts and circumstances of the case and in law, the ld. CIT(A) erred in allowing accumulation or set-apart to the extent of 15% by holding that assessee trust was allowed the benefit of section 11 & 12 of the I.T. Act, 1961? 7. Any other question of law as deemed fit in the facts and circumstances of the case may also be framed before the Hon'ble Tribunal in the interest of justice." 2. Briefly stated, the facts of the case are that the assessee socie....

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....ssing officer was right in denying the exemption claimed by the assessee under section 11 and 12 of the Act. 5. Per contra, the ld. AR submitted that from the provisions of the Act, it can be noted that exemption u/s 11/12 can be denied by the AO only if the conditions referred to in section 13 are not complied with. The discrepancy mentioned by the AO does not fall in any of the limb of section 13. The exemption granted u/s 12A has not been withdrawn till date. Therefore, denial of exemption u/s 11 is uncalled for. 6. It was further submitted by the ld AR that the discrepancy referred by the AO in the loan taken from Anil Kumar Nuhal is only an accounting error. The assessee has received loan of Rs. 10 lacs from Anil Kumar Nuhal and Rs. 5 lacs from his sister concern M/s Krishna Developer. However, the entire loan has been accounted for in the books in the name of Anil Kumar Nuhal. This fact is evident from the copy of bank account of assessee from which it is clearly evident that Rs. 10,00,000/- was received from Anil Kumar Nuhal and Rs. 5,00,000/- was received from M/s Krishna Developers. This fact was also stated vide letter dt. 28.12.2016 along with copy of confirmation fro....

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....fied by the appellant by filing the confirmation from M/s. Krishna Developers along with their bank account vide letter dt.28.12.2016 where the balance amount of loan of Rs. 5 lakhs was;: eflected as this concern is also a family concern of Sh. And Kumar Nuhal and the Trust entered the entire amount of Rs. 15 lakhs under his name, which explanation given in the statements of Sh. Anil Kumar Nuhal also the AO has not found to be false. Considering all the above facts and circumstances, the denial of the exemption made by the AO is not found to be justified and the AO is directed to compute the income after allowing exemption u/s 11/12. This ground of appeal is treated as allowed." In the result, the ground no. 1 and 2 of the Revenue's appeal is dismissed. 8. In the Ground No. 3, the Revenue is aggrieved by the action of ld CIT(A) in deleting the addition of Rs. 25,625/- on account of non deduction of TDS by holding that assessee trust was allowed the benefit of section 11 & 12 of the IT Act, 1961. Briefly stated, the facts of the case are that the AO observed that assessee has not deducted TDS on the interest of Rs. 25,625/- credited to the account of Sita Devi Kabra. According....

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....ly, he deleted the addition of Rs. 5 lacs made by the AO. 14. In this regard, the ld. AR submitted that the assessee has received loan of Rs. 10 lacs from Anil Kumar Nuhal and Rs. 5 lacs from his sister concern M/s Krishna Developer. However, by mistake the entire loan has been accounted for in the books in the name of Anil Kumar Nuhal. In support of the same, copy of bank account of assessee and confirmation from Krishna Developers and its bank account was filed. Hence, addition made by the AO is uncalled for. 15. We have heard the rival contentions and pursued the material on record. We find that the assessee has duly explained the transaction with Anil Nuhal and Krishna Developers which has been rightly appreciated by the ld CIT(A) and no infirmity therein has been observed by the ld CIT(A). We accordingly confirm the findings of the ld CIT(A) and the ground of the Revenue is dismissed. 16. In Ground No. 5, the Revenue is aggrieved with the action of the ld CIT(A) in deleting the addition of Rs. 2,28,24,920/- on account of expenses claimed for investment in acquisition of fixed assets by holding that assessee trust was allowed benefit of section 11 & 12 of the I.T. Act, 1961....