TaxTMI 
TaxTMI 
2022 (8) TMI 585
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....oner of income tax (Appeals) grossly erred on the facts and in law in sustaining the addition of Rs. 79,95,000/- ignoring the undisputed fact on record that assessee has no income, much less any income claimed exempt u/s 11/12 of the Act in the current year, so as to leaving any possibility to tax any income by disallowing exemption claimed. 2. That, learned commissioner of income tax (Appeals) manifestly erred in rejecting the contention that alleged advances made to three unrelated parties are not 'investment or deposit' so as to hit by provisions of S. 13(1)(d) of Act as per the settled law. 3. That, learned commissioner of income tax (Appeals) is further wrong in not accepting the contention that advances of Rs. 75,35,....
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....A.Y. 2009-10 and an amount of Rs.20,00,000/- on 02.04.2009 pertaining to A.Y. 2010-11. Thus, the total amount outstanding as on 02.04.2009 was Rs.45,35,000/- out of which the assessee has received back an amount of Rs.15,40,000/-. 7. The AO held that the assessee society being a charitable organization should not make any investment other than as provided in Section 11(5) of IT Act 1961. The specific show cause was given to the assessee on 28.01.2013 & 05.02.2013 for reply of assessee. The relevant part of show cause is reproduced as under: "You have given the fund of trust as advance to certain parties. Please explain as to why it may not be treated as diversion of fund." 8. In compliance to this specific show cause, the ass....
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....or deposited before 01.03.1983 in non-specified modes, continue to remain so invested or deposited after 30.11.1983, and (3) If any shares in a company (not being Government Company or a corporation established by or under Central, State or Provincial Act) are held after 30.11.1983. The Exception:- The proviso the section 13(1)(d) grants exceptions to the aforesaid provisions in relation to the following: (1) Any assets held by the trust or institution where such assets form part of the corpus of the trust or institution as on the 1st day of June, 1973; (2) Any accretion to the shares, forming part of the corpus mentioned above, by way of bonus shares allotted to the trust or institution; (3) Any....
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....le on record. 14. The provisions of Section 13 is an exception to the Section 11 as it reads "nothing contained in Section 11 shall operate so as to exclude from total income of previous year of the person in receipt thereof" and as per sub-section (1)(d)(i) "any funds of the trust invested or deposited otherwise than the modes specified under sub-section (5) of Section 11" means that all the investments or deposits should be as per sub-section (5) to Section 11. Section 11(5) specifies the forms and modes of investing or depositing the money which is saving certificate, post office SB, deposit in bank, UTI etc. Clause (b) of subSection (2) to Section 11 mandates that money accumulated as a result of non-application of income (<85%) to c....
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....ection (2) of section 80G, any sum received by such trust or institution as voluntary contribution for the purpose of renovation or repair of such temple, mosque, gurdwara, church or other place, may, at its option, be treated by such trust or institution as forming part of the corpus of the trust or the institution, subject to the condition that the trust or the institution,- (a) applies such corpus only for the purpose for which the voluntary contribution was made; (b) does not apply such corpus for making contribution or donation to any person; (c) maintains such corpus as separately identifiable; and (d) invests or deposits such corpus in the forms and modes specified under sub-section (5) of section ....