2023 (11) TMI 80

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.... Ved Jain, Advocate, Ms. Uma Upadhyay, CA ORDER PER N. K. BILLAIYA, AM: This appeal by the revenue is preferred against the order of the CIT(A)-1, Noida dated 24.02.2020 pertaining to A.Y. 2014-15. 2. The grievance of the revenue read as under :- 1. Whether on the facts or in law the CIT(A) was justified in allowing benefit of exemption u/s 11 of the IT Act to the assessee whi....

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....te of Physio-therapy, Rehabilitation and allied medical sciences. 4. The assessee filed its return of income electronically on 25.11.2014 declaring nil income. The return was selected for scrutiny and accordingly statutory notices were issued and served upon the assessee. 5. The assessment was completed vide order dated 21.12.2016 framed u/s. 143(3) of the Act at an assessed income of Rs. 55....

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....ant has worked out interest @ 12% over the fund utilized by the hospital which is as under :- Thus the total interest for AY 2014-15 is worked out at Rs. 41,88,312/- which is to be taxed at Maximum Marginal Rate without giving benefit of exemption. Remaining amount of Rs. 40,80,000/- is to be taxed for AY 2015- 16. The prevailing market rate of interest is to be ascertaining by the AO and....

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....herein the Hon'ble High Court has held that "it is only the income from such investment or deposit which has been made in violation of Section 11(5) of the Act that is liable to be taxed". 11. Accordingly deletion of addition of Rs. 2,16,06,656/- does not called for any interference, accordingly appeal by the revenue is dismissed. Order pronounced in the open court on 31.10.2023. ========....