TaxTMI 
TaxTMI 
2019 (12) TMI 376
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.... of Income Tax (Appeals), Lucknow. The appeal was admitted on following substantial questions of law which are quoted as under: "1. Whether on facts and circumstances of the case and in law the learned ITAT is justified in allowing the claim of exemption u/s 10(23AA) of the Income Tax Act 1961 when for its eligibility under this Section the income should have been generated by a fund established by the armed forces of the Union ? 2. Whether on the facts and circumstances of the case and in law, the learned ITAT is justified in deleting the addition of Rs. 20,15,500/- made u/s 40(a)(ai) of the Act whereas the exemption u/s 11of the Income Tax Act 1961 has been denied in this case in the assessment order dated 12.02.2016 ? 3. Whether on....
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....the assessment order, the assessee preferred an appeal before the CIT (Appeals). It was heard alongwith remanded appeal. The CIT (Appeals) allowed the appeal of the assessee after holding him to be entitled to the benefit under Section 10(23AA) of the Act, 1961. The other issues were in reference to non-deduction of TDS as per Section 40(a)(ia) of the Act so as of the issue of maximum marginal rate. The CIT (Appeals) allowed the appeal. The revenue challenged the order of CIT (Appeals). It has been dismissed by the tribunal by maintaining the order passed by the CIT (Appeals). Thus, the present appeal has been preferred to challenge the order of CIT (Appeals) as well as the tribunal. Learned counsel for the revenue submits that exemption ....
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....further urged that CIT(Appeals) has also committed an illegality in deleting the addition of Rs. 20,15,500/- ignoring the fact that the exemption under Section 11 of the Income Tax Act of 1961 was denied in the assessment order dated 12.02.2016. It is in view of the violation of Section 13 of the Act of 1961. The deletion of the addition of Rs. 20,15,500/- is in ignorance of Section 11 and Section 13 of the Act, 1961 and for that the order passed on 12.02.2016. The CIT(Appeals) so as the tribunal simply referred the provision of Section 40(a)(ia) of the Act of 1961 to delete the addition. It is ignoring the proviso appended to the said provision. Thus, even deletion of the addition of Rs. 20,15,500/- by the CIT(Appeals) and upheld by the t....
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....t has not rightly deducted TDS on Rs. 20,15,500/-. The CIT(Appeals) and the tribunal have considered the issue properly while deciding the appeal. In the same manner, the CIT(Appeals) had rightly restricted the maximum marginal rate on the addition of Rs. 1,54,745/- and Rs. 2,95,185/-. It is after considering Section 164 (2) of the Act of 1961. Since the assessee was having registration under Section 12A of the Act of 1961 and was doing charitable work, the CIT(Appeals) allowed the appeal preferred by the assessee and thereupon tribunal had dismissed the appeal preferred by the revenue. The prayer is to maintain the order passed by the CIT(Appeals) as well as by the tribunal. We have considered the rival submissions of learned counsel fo....
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....facts of the case. Section 10(23AA) of the Act of 1961 is thus quoted hereunder for ready reference: "[(23AA) any income received by any person on behalf of any Regimental Fund or Non-Public Fund established by the armed forces of the Union for the welfare of the past and present members of such forces or their dependents;]." The provision quoted above shows that under what circumstances exemption can be claimed. It can be for the income received by any person on behalf of any regimental fund or nonpublic fund established by the armed forces of the Union for the welfare of the past and present members. In the instant case, the assessee has failed to prove income on behalf of regimental fund or non-public fund established by the armed forc....
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....bunal upheld the order passed by the CIT(Appeals) ignoring the fact of denial of exemption under Section 11 of the Act of 1961. Once the exemption under Section 11 was denied, the assessee was required to deduct the TDS and thereby the addition was rightly made by the Assessing Authority. Accordingly, CIT(Appeals) so as to the tribunal was not justified to delete addition by referring to Section 40(a)(ia) while ignoring proviso appended to it and the order dated 12.02.2016 where the exemption under Section 11 of the Income Tax Act of 1961 was denied to the assessee. Thus, order of the CIT(Appeals) so as to the tribunal needs interference even on that count. The last substantial question of law is regarding maximum marginal rate. The maximu....