TaxTMI 
TaxTMI 
2023 (9) TMI 1534
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....dated 19/12/2019 passed under Section 143(3) r.w.s. Section 147 of the Act. Both the appeals of the revenue relate to A.Y. 2014-15. In both these appeals, certain facts are common, therefore, with the consent of parties both appeals were clubbed, heard together and are being decided by this consolidated order. In ITA No. 166/Srt/2023, the revenue has raised following grounds of appeal: "1. Whether in the law and the facts of the case, the ld. CIT(A) erred in deleting the addition made by the Assessing Officer in disallowing the claim of chairpersons' birthday celebration expenses of Rs. 7,786 being personal expenditure incurred for Birthday celebration of Chairperson and therefore the same cannot be said to be incurred for the objects of the trust. 2. The appellant craves leave to add, amend, delete or modify grounds of appeal before the finalization of appeal." 2. Brief facts of the case are that the assessee is an educational trust, filed its return of income for A.Y. 2014-15 on 27/09/2014 declaring NIL income after claiming application of Section 11 & 13 of the Act. The case of assessee was selected for scrutiny. During assessment, the Assessing Officer noted that the ass....
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....the learned Authorised Representative (ld. AR) of the assessee and have gone through the orders of the lower authorities carefully. Though, we find that the Revenue has challenged the deletion of addition of Rs. 7,786 which is very meagre amount and tax effect if any thereof is only Rs. 2,920/-, which is below the limit of tax effect for filing appeal before Tribunal, yet, the Assessing Officer/ITO has filed this appeal. The assessing officer has raised plea in the grounds of appeal itself that this case falls under the exception clause in para 10(c) of CBDT Circular No. 03/2018 dated 11/07/2018. Exception clause in para 10(c) of CBDT Circular (supra) prescribe to audit objection. There is no reference of any audit objection in the assessment order or any material before us that the impugned addition of Rs. 7,786/-. 6. We instead of going in such controversy, decided to adjudicate the issue on merit. The ld. Sr. DR for the revenue supported the view taken by the Assessing Officer while denying such expenditure. The ld. Sr. DR for the revenue submits that by not act of imagination, the impugned expenses could be considered as incurred for the object of the trust and Assessing Offic....
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....ear infringement of the provision of Section 13(1)(c)(ii) of the Act. 2. The appellant craves leave to add, amend, delete or modify grounds of appeal before the finalization of appeal." 11. Brief facts of the case are that while disallowing the expenses of Rs. 7,786/- on account of chairperson's birthday as the Assessing Officer was of the view that the trust has directly and indirectly benefited the person specified under Section 13(3) and the assessee is not eligible for availing benefit of Section 11 and 12 of the Act. Further taxable income of assessee in A.Y. 2014-15 revealed that the assessee has allowed accumulation of income @ 15% under Section 11(1)(a) of Rs. 30,52,808/- which was not allowable to the assessee as hit by Section 13 of the Act. The Assessing Officer on the basis of such view, has reason to believe that income of assessee has escaped assessment. Therefore, case of assessee was reopened under Section 147 of the Act. Notice under Section 148 dated 23/03/2019 was issued after recording reasons. The assessee filed his return of income in response to notice under Section 148 on 29/04/2019. Reasons recorded was provided to the assessee. The Assessing Officer a....
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....nefit to any interested person under Section 13(3) of the Act, so he also held that the Assessing Officer was not justified in denying the claim of exemption under Section 11 of the Act by invoking provisions of Section 13(1)(c) r.w.s. 13(3) of the Act. The ld. CIT(A) held that once the benefit of exemption under Section 11 is allowed, consequently, the statutory accumulation @ 15% of the receipt is to be allowed to the assessee. Aggrieved by the order of ld. CIT(A), the revenue has filed present appeal before this Tribunal. 14. We have heard the submissions of both the parties. The ld. Sr. DR for the revenue supported the order of Assessing Officer and reiterated that the assessee-trust was incurring expenses for the benefit of trustee which has not in accordance with object of the trust and the Assessing Officer rightly disallowed the exemption under Section 11 by invoking provisions of Section 13(1)(c) r.w.s. 13(3) of the Act. The ld Sr DR for the revenue submits that though the tax effect in the present appeal is below the limit of tax effect, however, the case is covered under clause (c) of Para 10 of CBDT Circular(supra). 15. On the other hand, the ld. AR of the assessee su....