2009 (8) TMI 43

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....w: 1. "Whether in the facts and circumstances of the case, the learned ITAT has erred in law in allowing the exemption to the assessee u/s 11(1)(a) instead of exemption under Section 11(4A) because as per the Aims and Objects of the Society, the schools were established only to achieve the Aims and Objects. Therefore, the establishment of school is incidental to promoting the Aims and Objects of the Charitable Societies/Institutions as per their own articles of association/memorandum." 2. "Whether in the facts and circumstances of the case, the ld. ITAT has erred in allowing the application of money on construction of building especially when no verification by the AO was ever done nor was it put up to the AO during the course of asse....

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....a) Manav Mangal Society 2,67.832.00 74905   Manav Mangal School,Chandigarh 1,05,54,039.00 4,58,708.00   Manav Mangal School, Panchkula 1,53,32,255.00 30,31,368.00     2,61,54,126.00 35,64,981.00   As per judgment of the Hon'ble Supreme Court, the assessee society has applied an amount of (Rs.2,61,54,126/- minus Rs.35,64,981/-) Rs.2,25,89,145, which works out to 86.36% leaving a balance of Rs. 13.64% (Rs.35,64,981/-) for accumulation.  According to the AR, the Ld. Assessing Officer has wrongly applied the percentage of 85 to the unspent balance as against to the figure of Rs.2,61,54,126/-. It was claimed that since the assessee society has spent/applied its inco....

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....the view, if the expenditure of Rs.41,12,590/- was incurred for the construction of the Panchkula building, it nowhere violates the aims and objects of the assessee society as is evident from item No.(e) of the aims and objects of the assessee. It is not the case of the revenue that the expenditure was incurred fore the personal benefit of the persons who are managing the society." The Tribunal further observed as under: "It is not the case of the revenue that running of the schools or investment in the construction of the building of such schools is not incidental to its object. Therefore, the income of the society will be covered u/s 11 (4A) .  Sub section (1) or sub section (2) or sub section (3) or sub section (3A) shall not ....