2020 (3) TMI 341

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....rojected the following two questions as substantial questions of law:- (i) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified by relying upon the decision of CIT(A) in which the CIT(A) erred in relying on the lease agreement between the assessee and the lessor ignoring the fact that the transaction is not at arm's length and is between interested parties? (ii) Whether on the facts and in the circumstances of the case and in law, the Tribunal failed to take into account the advance of Rs. 6.68 crores to M/s. Kalyani Education Pvt Ltd claimed to be "deposit for leased assets" and payment of Rs. 5 Lakhs as monthly rental against a property of Rs. 31 Crores which in itself prov....

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....(Appeals) (I), Mumbai i.e the first appellate authority. By the appellate order dated 8.10.2013, the first appellate authority observed that findings of the Assessing Officer were based on suspicion and in facts and circumstances of the case, respondent - assessee was entitled to exemption under Section 11 of the Act. Consequently, Assessing Officer was directed to delete the additions and to allow the exemption to the respondent - assessee. 6. Aggrieved by the said order of the first appellate authority, revenue preferred appeal before the Tribunal. However, Tribunal by the order dated 10.1.2017 dismissed the appeal of the revenue. Aggrieved, revenue is in appeal before us. 7. Submissions made by Mr. Mohanty, learned standing counsel....

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..... 5.5 It is on record that the deposit of Rs. 6,68,00,000/- as above is in pursuance of a valid lease agreement for the user of premises and various other facilities and fixed assets in the nature of building, ground etc. by the appellant in the process of carrying out educational activities/charity. It has not been questioned by the AO that leased asset in the form of land, construction and equipments (used by the appellant for its purpose as also noted in the assessment order at pg.12 in the reply of assessee) to the extent of Rs. 7,70,00,000/- were utilised by the appellant during the year. It is proved from the copy of electricity bills and other state govt. records like rent of the land, tax receipt, electricity bill etc. that....

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....he Act. 5.6 In view of facts and circumstances of the case on this issue, the appellant is entitled u/S. 11 of the I.T. Act. Hence, the AO is directed to delete the additions and allow exemption to the appellant u/S. 11 r/w S. 12 and 13 of the I.T. Act" 8.1. From the above, it is seen that the first appellate authority considered the lease agreement and the fact that the deposit was made pursuant to the same for user of premises and other assets, such as, building, building ground etc. for carrying out educational activities / charity. As a matter of fact, the first appellate authority came to the conclusion that respondent assessee had proved that the premises and the assets envisaged in the lease agreement were actually used b....