TaxTMI 
TaxTMI 
2021 (8) TMI 285
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....he case and in law, the ld. CIT(A) has erred in giving the findings that the development receipts would be taxable as in the case of AOP and the AO made draw receipt and expenditure account for the taxation of the same by ignoring the decision of the Hon'ble ITAT. 4. The assessee craves your indulgence to add, amend or alter all or any grounds of appeal before or at the time of hearing." 2. The hearing of the appeal was concluded through video conference in view of the prevailing situation of Covid-19 Pandemic. 3. Grounds No. 1 to 3 of the appeal are interrelated and interconnected and relates to challenging the order of the ld. CIT(A) in passing order U/s 154 of the Act, therefore we thought it fit to dispose off by this consolidated order. 4. As per the facts of the present case, assessment order for the year under consideration was passed on 18/11/2016 thereby making addition on the following counts: (i) Addition of Rs. 5,22,21,300/- treating the revenue receipts whereas these receipts are development receipts. (ii) Addition of Rs. 23,16,700/- (Registration Receipts of Rs. 31,92,000/-, Book Bank receipts of Rs. 2,90,000/- and form & Late Receipts Rs.(-) 11,65,300/- as i....
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....t history and without application of mind. The various conditions for claiming exemption under Section 11 of the Acts are listed as follows:- (a) The Trust or institution must be created wholly for charitable or Religious purpose. (b) It must be registered with the Commissioner of Income Tax under Section 12AA of the Act. (c) The Property should be held under trust. (d) Separate Books of Account should be maintained if Trust or Institution earns Profit or Gains from Business Undertakings held by trust for attainment of objects of trust/institution. (e) The income of the trust shall be applied in accordance with the Provisions of section 11 & 12 of the Act. (f) The books of accounts should be audited if total income before giving effect of Section 11 or 12 of the Act exceeds maximum amount not chargeable to tax. (g) The funds of the trust should be invested/deposited as per Section 11(5) of the Act. It is clearly established from the return of income of the Appellant that it has claimed exemption u/s 11 of the Act by satisfying all the Conditions mentioned herein above. The Ld. AO has nowhere in the impugned assessment order raised any objection as to why exemption....
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....ord, we find that assesses deserves to succeed in this ground. We have seem various assessment orders for earlier gears, copies of which are placed on record and found. That the respective assessing officers had allotted the net deficit to be carried forward in the respective assessment order. Therefore, there is no reason in not allowing the benefit of quantified carry forward losses/deficit. Accordingly, we direct the AO to allow the benefit of quantified carry forward losses to the assessee against the income of the assessee." Thus, the finding of the Ld. AO that the issue relating to Section 10(23C) of the Act has been decided in favor of the revenue by the Hon'ble Tribunal of Jaipur and the same was not challenged in higher Courts is incorrect and not as per the true facts of the case. Further, Arriving at a conclusion by the Ld. AO regarding denial of exemption u/s 10(23C) of the Act for the year under consideration is not relevant for the facts of the present case as what was never claimed by the Appellant cannot be denied/disallowed. Further, the Appellant has its account audited as required under the Act and a copy of the audited books of accounts are produced befo....
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....reof, if for any period during the previous year- (i) any funds of the trust or institution are invested or deposited after the 28th day of February, 1983 otherwise than in any one or more of the forms or modes specified in subsection (s) of section 17; or (ii) any funds of the trust or institution invested or deposited before the 1st day of March" 1983 otherwise than in any one or more of the forms or modes specified in sub-section (5) of section 11; continue to remain so invested or deposited after the 30th day of November, 1983; or (iii) any shares in a company, other than- (A) Shares in a public sector company; (B) Shares prescribed as a form or mode of investment under Clause (xii) of sub-section (5) of section 11, are held by the trust or institution after the 30th day of November 1983" Section 13(1)(d) of the Act further states that the exemption u/s 11 & 12 shall not be allowed if the funds of the charitable institution are invested for any period during the year in any form otherwise as prescribed u/s 11(5) of the Act. However, in the year under consideration there is no such violation. Now in the present case, the Ld. AO has passed the impugned assessment ....
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....ing Officer in the Assessment Year 2013-14 has also not allowed the exemption u/s 10(23C) of the Income Tax Act, 1961. The exemption u/s 11 & 12 was allowed by the Learned CIT(A) vide their order in ITA No. 283/2015-16 dated 30.11.2016 for Assessment Year 2013-14. Copy of order is placed on paper book page no. 36 to 47 wherein the learned CIT(A) has specifically allowed exemption u/s 11 and 12 of the Act on internal page 19 of the order page book page no. 45 in last para which reads as under:- "In view of the facts and circumstances of the case as discussed above and duly considering the case laws relied upon by the assessee and remand report and rejoinder filed, I am of the considerate view that as there is no violation of section 13(1) of the Act, exemption u/s 11 & 12 of the Act is allowable to the assessee which is also registered u/s 12AA of the Act." The department has also filed appeal against the above order and the Hon'ble ITAT has dismissed the appeal of the department. Copy of ITAT order is placed on paper book page no. 15 to 23 and finding is on internal page no. 8 para 6 and revenue appeal was dismissed. Therefore there is no ground to raise this issue again an....
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....e copy of the order has also been placed on record at page No. 36 to 47 of the paper book. In the said order, the ld. CIT(A) has specifically allowed exemption U/s 11 and 12 of the Act and the relevant portion of the order of ld. CIT(A) is as under: "In view of the facts and circumstances of the case as discussed above and duly considering the case laws relied upon by the assessee and remand report and rejoinder filed, I am of the considerate view that as there is no violation of section 13(1) of the Act, exemption u/s 11 & 12 of the Act is allowable to the assessee which is also registered u/s 12AA of the Act." 10. Aggrieved by the order of the ld. CIT(A), the Revenue has filed an appeal before the Coordinate Bench of this Tribunal and the Coordinate Bench had dismissed the appeal of the department. The copy of the order of the ITAT which is at page No. 15 to 23 of the paper book and the relevant findings ae contained in internal page No. 8, para 6 and consequently, the appeal of the Revenue was dismissed. The ld. CIT(A) while passing the order has categorically held that there is no violation of Section 13(1) and exemption U/s 11 and 12 of the Act is allowed to the assessee wh....