2025 (8) TMI 767

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....pugning an order dated 30.07.2024 [impugned order] passed by the learned Income Tax Appellate Tribunal [ITAT] in ITA No.689/Bang/2024 in respect of Assessment Year [AY] 2016-2017. 2. The Revenue had preferred the said appeal before the learned ITAT assailing the order dated 22.02.2024 passed by the National Faceless Appeal Centre, New Delhi [NFAC], whereby the ITAT has dismissed the grounds raised by the Revenue. 3. The controversy in the present case relates to the additions on account of the following: i) disallowance of Rs. 3,14,00,000/- made by the AO in respect of the calculation of accumulation; and ii) disallowance of Rs. 8,70,00,000/- made by AO in respect of capital expenditure. 4. The Revenue has project....

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....the current financial year and the list of beneficiaries of the solar lamp project, while in the absence of such details, it cannot be proved that respondent/assessee had actually applied funds for the stated objects of the trust?" 5. The respondent [Assessee] is a Charitable Trust run by Canara Bank. The Assessee was registered under Section 12A of the Income Tax Act, 1961 [the Act] since 06.01.1982. 6. The Assessee had filed its return of income for AY 2016-17 claiming exemption under Section 11 of the Act and declared 'NIL Income". The Assessee's return was selected for scrutiny and the assessment proceedings culminated in an Assessment Order dated 25.12.2018 passed under Section 143(3) of the Act. The Assessing Officer [AO....

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....he Assessee explained that it is a Charitable Trust and one of its main object was rural development. The Assessee explained that the accumulated amount of less than 15% of its total receipts were carried forward under Section 11(1)(a) of the Act. It had also incurred capital expenditure of Rs. 6,03,83,149/- for construction of building and a water treatment plant etc. The sum of Rs. 3,14,51,045/-, which had been carried forward from earlier years is reflected in Form No. 10 for AY 2015-16 and balance Rs. 2,89,32,104/- was incurred from the current year's income. 10. The Assessee explained that it had spent a sum of Rs. 8,40,00,000/- for commissioning water treatment plant for rural development in drought hit areas of Kolar and Chikk....