2019 (8) TMI 1822

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....has erred in law and on facts of the case by confirming the disallowance of legitimate claim of deduction of Rs.4,03,4357- u/s.11(l)(a) of the I.T. Act, 1961 as claimed in the return of income filed by the Appellant.  2. The Learned Commissioner of Income Tax (Appeals)- 9, Ahmedabad has erred in law and on facts of the case by confirming the disallowance of deduction of Rs.29,922/- for amount of TDS for which credit has been claimed against tax payable on the returned income." 3. Brief facts of the case are that the assessee has filed its return of which was processed under section 143(1) of the Income Tax Act, 1961 determining the income at Rs.8,92,931/- as against total income of Rs.7,61,081/-. As far as first ground of appeal is ....

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....ic finding on this issue. 5. Before us, the assessee raised two fold submissions. Firstly, on the strength of Hon'ble Kolkatta High Court in the case of CIT Vs. Natwarlal Chowdhury Charity Trust, 52 taxmann 330 (Kol) it is entitled for deduction at 15% of the alleged deemed income offered for taxation in this assessment year. In the second contentions, she contended that both the issues are debatable that cannot be adjudicated under section 143(1) of the Act. 6. On the other hand, the ld.DR relied upon the order of the Revenue authorities. He placed on record copy of ITAT's order in the case of the Trustees, The B.N. Gamadia Parsi Hunnarshala, 77 TTJ 274 (Mum-Trib.) We would like to reproduce brief order of the Hon'ble Kolkatta High Court....

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....ricted view for denying the exemption which is specifically allowed by the statute. In fact, as per the law as stood from April 1, 1976, charitable trusts are permitted to accumulate up to 25% of their income without complying with any formalities or condition and such accumulation is not included in the total income. Therefore, we uphold the order of the Appellate Assistant Commissioner as it is quite justified in law and the assessee would be entitled to accumulate 25% of the total income of the previous year relevant to the assessment year 1978-79 inclusive of the deemed income under section 11 (3) of the Income-tax Act, 1961. 4. Mr. Moitra, appearing on behalf of the Revenue, has failed to show any infirmity in the order of the Tribun....