2022 (11) TMI 116

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....x Act, 1961 without appreciating that the assessee was not engaged in charitable activity and had earned above normal profits. 2. That the appellant craves to leave, add or amend the grounds of appeal on or before the appeal heard and disposed off." 2. The assessee through its AR Mr. Vibhor Garg, CA had moved an adjournment application stating that due to pre occupation in finalization of statutory audits, he is unable to appear before the Bench. In this regard it is noted that the appeal was filed way back in March 2020 and has been adjourned on as many as fifteen occasions in the past for one reason or the another and therefore, it was decided that no useful purpose would be served in adjourning the matter any further and it was deci....

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....OVID-19 Pandemic by the decision of Hon'ble Supreme Court as well as by the decision of the Central Government as so referred by the Ld. DR, the delay so happened in filing the present appeal is hereby condoned and the appeal is admitted for adjudication. 4. Briefly the facts of the case are that the assessee society filed its return of income on 26/09/2012 claiming exemption under section 11, the matter was selected for scrutiny and after issuing of notices and calling for the information, explanation from the assessee, the AO held that the activities of the assessee society are not charitable in nature and the benefit of claim of exemption under section 11 was denied to the assessee society and excess of receipt over expenditure amountin....

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....ich read as under: "The facts of the case, basis of denial of benefit u/s 11 and bringing to tax the surplus amount at maximum marginal rate by the AO and arguments of the AR during the course of appellate proceedings have been considered. The AR has argued that the registration of the assessee u/s 12AA is restored by the Hon'ble ITAT vide order dated 19.10.2010 which has also been accepted by the AO in para 2 of the assessment order and assessment for A.Y. 2009-10, 2013-14, 2014-15, 2016-17 have been completed by accepting the claim of the assessee as society registered u/s 12A of the Income Tax Act, 1961. The AR has also argued that the CCIT, Chandigarh has rejected the registration u/s 10(23C)(vi) but the issue has been restored ba....

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....r A. Y 2013-14, order dated 30.11.2016 for A.Y. 2014-15 and order dated 10.12.2018 for AY 2016-17, perusal of which shows that the claim of the assessee for registration u/s 12A has been accepted by the AO for all these years for which the assessments were completed u/s 143(3) and the returned incomes were accepted in all these years without making any disallowance/ addition. Under the facts & circumstances of the case, the claim of the assessee for benefit of exemption u/s 11/12A is to be allowed for the year under consideration also. Regarding the depreciation, the AO is directed to examine whether the assets on which the depreciation is claimed were acquired as application of funds or out of accumulated/set apart funds for such applicati....