TaxTMI 
TaxTMI 
TaxTMI 
2022 (2) TMI 334
X X X X Extracts X X X X
X X X X Extracts X X X X
....holding the income is chargeable to tax u/s. 11 (4A), is bad in law and against the facts and circumstances of the case. 4. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in rejecting the books of accounts. 5. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in not deleting the action of Ld. AO in making the addition of Rs. 746,27,55,523/- on account of closing stock fully and has further erred in sustaining the same to the extent of Rs. 67,27,18,637/- and that too by recording incorrect facts and findings and in violation of principles of natural justice. 6. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in making the ad Rs. 222,25,16,780/- on account of sales made during the year and that too by recording incorrect facts and findings and in violation of principles of natural justice. 7. That having regard to the facts and circumstances of the case, Ld. CIT(A) law and on facts in confirming the action of Ld. AO in making the Rs. 36,79,49,....
X X X X Extracts X X X X
X X X X Extracts X X X X
....82 or Societies registration Act, 1860. Further, the activities are also not charitable, per se as it sells land on commercial rates and to fudge profit it does not follow commercial accounting principles. GDA preferred appeal before the ITAT in ITA No. 2903 (Del) of 2006 which has been allowed by the ITAT vide order dated 31.07.2007 against which Revenue filed appeal before the Hon'ble Allahabad High Court which has been dismissed vide order dated 29.08.2016. Needless to mention that the ITAT allowed this appeal of the assessee making a reference to an earlier judgment dated 25.07.2005 in ITA No. 590 (Luck) of 2003 wherein registration for similar body was directed to be allowed. Meanwhile, as per directions of the ITAT, New Delhi, against which Revenue filed appeal before Hon'ble High Court, the assessee was granted registration u/s. 12AA of the Act w.e.f. 31.03.2003. The effective date of registration has further been directed by the ITAT, new Delhi vide order dated 20.09.2016 to be effective from 01.04.2002 instead of 31.03.2003, effect to which is yet to be given by the ld. CIT(Exemption), Lucknow. 2. The assessee is engaged in development work constituted under Uttar....
X X X X Extracts X X X X
X X X X Extracts X X X X
....1,17,545/- on account of uniform expenses, Rs. 21,73,742/- on account vehicle maintenance expenses and Rs. 1,42,277/- was made for non/short deduction of TCS u/s. 40(a)(ia). A sum of Rs. 17,00,000/- was disallowed being expenses incurred on functions and inaugurations etc. wherein no TDS was done and this sum remained unconfirmed. A sum of Rs. 3,41,215/- was added on account of capitalization of certain expenses under the head computer maintenance, which were of capital nature. A sum of Rs. 12,50,000/- was added on account of un-vouched payment of the same to Greater Noida Industrial Area Authority claimed to have been paid as contribution for exhibition on Real Estate India Exhibition 2005 and for which no TDS was deducted. On 30.10.2015, the AO passed the Assessment Order computing the income of Rs. 4,62,53,14,224/- against the returned income of Rs. Nil. 6. While completing the assessment, the AO also denied the benefit of exemption u/s. 11 of the Act, while the assessee was registered u/s. 12A read with section 2(15) of the Act in the year under consideration. 7. Aggrieved, the assessee filed appeal before the Ld. CIT(A) against the additions. The ld. CIT(A) supported the ord....
X X X X Extracts X X X X
X X X X Extracts X X X X
....her sections has to be examined separately. Merely the fact that the object of creation of society is not to earn profit explicitly, does not entitle non-chargeability of incidental income received by appellant especially while considering the inclusive definition of income u/s. 2(24). 9. Holding thus, the Ld. CIT(A), keeping in view the above facts, affirmed the action of AO making an assessment denying the claim of the assessee. 10. In this background, the issue to be decided by us narrows down to whether Section 2(13) of the Income Tax Act, 1961 is applicable to the functions of the assessee or whether it is Section 2(15) of the Act which needs to be invoked. 11. Section 2(13) reads as under: "business includes any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture." Whereas Section 2(15) of the Act defines "charitable purpose" to include relief of the poor, education, medical relief, preservation of environment, preservation of monuments and any other objects of public utility". 12. This object of "public utility" as per Section 2(15) in the case of the assessee has been examined in detail by the Tribunal and furt....