2014 (5) TMI 1247

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..../- on account of excess of income over expenditure and directing the Assessing Officer to compute the income of the assessee under section 11 & 12 of the Income Tax Act, 1961 by ignoring the fact; that the Department has not accepted the order of the Hobble ITAT for A.Y. 2005-06 regarding grant of registration under section 12AA of the Income Tax Act, 1961 to the assessee and an appeal under 260A of the Act has been filed before the Hon'ble High Court, Allahabad. 2. That the Ld. Commissioner of Income Tax (Appeals)-II, Kanpur has erred in law and on facts of the case in deleting the addition of Rs. 5,40,000/- on account of salary paid to the specified persons covered under section 13(3)/40A(2)(b) of Income Tax Act, 1961 without....

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....r of the assessee but Revenue has filed appeal u/s 260A of the Act before Hon'ble Allahabad High Court and therefore, learned CIT (A) is not justified in deciding this issue in favour of the assessee. We do not find any merit in the grounds raised by the Revenue because it is not shown by the Revenue that the Tribunal order in I.T.A. No. 64/Luc/09 dated 17/04/2009 has been stayed by Hon'ble Allahabad High Court and in that situation, it has to be accepted that this issue is covered in favour of the assessee by the Tribunal decision and therefore, there is no infirmity in the order of learned CIT (A) on this issue. Accordingly, this ground of the Revenue is rejected. Xxx 7. We have considered the rival submissions. ....

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....or more of income has been utilized for the purpose of assessee institution, being charitable purpose, then obviously it has to be held that the assessee institution is entitled for exemption u/s 11 but if the assessee fails to do so then no such exemption is allowable. The Assessing Officer should pass necessary order as per law as per above discussion after providing reasonable opportunity of being heard to the assessee. Ground No. 2 is allowed for statistical purposes. Xxx 10. We have considered the rival submissions. We find that the disallowance of Rs. 5.40 lakhs was made by the Assessing Officer by invoking the provisions of section 13(3) of the Act. Learned CIT(A) has deleted this disallowance on the basis that simi....