2023 (1) TMI 900

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....round that the appellant has violated the provision of Section 13(1)( c), 13(1)(d) by - (a) holding of shares of Rs.11,200/- in a company called M/s. Parthvimeda Panchgavy Utpad Pvt. Ltd. (b) investing Rs.36,10,000/- in land in the names of the trustee/ employees. 2. The Ld. CIT(A) has a sequel, erred in law and on fact in confirming an addition of Rs.45,39,689/- u/s 40(A)(3) of the Income Tax Act. 3. The Ld. CIT(A) has erred in law and on facts in confirming an addition of Rs.4,33,200/- on account of notional interest on amount of investment in land of Rs.36,10,000/- in names other than that of the trust. 4. Without prejudice to Ground No. 1, the Ld. CIT(A) has erred in not restricting the addition to income to the extent of violatio....

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.... following additions:- (a) Since investment has been made in the name of individuals, the AO imputed interest on it @ 12% and accordingly added Rs.6.72 lacs. (d) The AO also noticed that there was violation of Section 40A(3) of the Act and accordingly added a sum of Rs.33.94 crores. The AO accordingly computed total income of the assessee at Rs.29.91 crores. The appeal filed by the assessee was partly allowed by the ld. CIT(A). 4. With regard to the investment made in shares, the ld. AR further submitted that the above said shares in PPUPL was not purchased by the assessee, but it was received as gift from a donor. With regard to the investment made in the agricultural lands in the name of employees and trustees, the ld. AR submitted t....

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....ion of notional interest and addition made u/s 40A(3), shall be liable to be deleted, once the assessee is granted exemption u/s 11 of the Act. 6. On the other hand, the ld. DR submitted that the assessee is making new contentions and hence they require examination by tax authorities. 7. We heard the rival contentions and perused the record. We noticed that the AO has denied exemption u/s 11 of the Act by observing that there is violation of provisions of Section 13(1)(c) and 13(1)(d) of the Act. The submission of the assessee is that there is no such violation of provisions of the Act as alleged by the AO. It was submitted that there is no violation of Section 11(5) of the Act, as making investment in immovable property is one of the mod....