TaxTMI 
TaxTMI 
2025 (2) TMI 1466
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....involved in these appeals are interconnected, they are being disposed of by this consolidated order for the sake of convenience and brevity. The assessee and Revenue have raised the following grounds of appeal: ITA No.- 3761/Del/2024 (By the Assessee - A.Y.- 2017-18) "1) The National Faceless Appeal Centre (NFAC) erred in law as well as on facts in upholding the addition made by the AO by considering receipts from conference facility and hiring of Auditorium of Rs 14,45,953/- to be income from business and Profession and not considering it to be incidental to the main objects of the society. 2) The learned Assessing Officer has erred both in facts and in law by levying interest under section 234B and 234D of the Act. ....
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....to appreciate that the expenses with respect to printing (Rs. 16,51,791/-) and salary (Rs. 56,26,423/-) cannot be held as the expenses incurred as per the specific purpose mentioned in Form 10 i.e. to promote and support research scientist. 5E) The appellant craves leave to add, to alter or amend any grounds of appeal raise above at the time of hearing. ITA No.- 3760/Del/2024 (Assessee - A.Y.- 2018-19) "1) The National Faceless Appeal Centre (NFAC) erred in law as well as on facts in upholding the addition made by the AO by considering receipts from conference facility and hiring of Auditorium of Rs 19,35,253/- to be income from business and Profession and not considering it to be incidental to the main objects of the s....
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....fund (Rs. 4,87,57,514/-) in A.Y. 2020-21, which deemed to be applied during the A.Y. 2019-20 as per explanation (2) to sub-section 1 of 11 in A.Y. 2020-21, which was mandatorily required to be utilized. 2. b) Under the fact and circumstances and law the Ld. CIT(A) has failed to appreciate that assessee has put same amount as accumulation in Form 9A & 10 and used the same description for purpose in Form 10 & reasons for shortfall in Form 9A. Thus, assessee has accumulated funds without reasons or specific purpose in mind. 3. c) Under the fact and circumstances and law the Ld. CIT(A) has failed to appreciate that, the assessee has claimed exemption u/s 11(2) in return of income, whereas as per audit report in Form 10B has cl....
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.... facts in all the appeals are common, we deal with the assessee's appeal in ITA No. 3761/Del/2024 for AY 2017-18 first and the decision thereof would apply mutatis mutandis to all the appeals of the assessee. In this case, the return of Income declaring nil income was filed on 07.10.2017 electronically. The case was selected for complete scrutiny under CASS and accordingly notice u/s 143(2) of the Act was issued digitally on 14.08.2018. Subsequently notice u/s 142(1) of the Act was issued on 03.07.2019, 30.08.2019 and 18.10.2019. Further, show cause was also issued on 24.12.2019. The assessing officer passed assessment order on 30.12.2019 making additions as follows: Sl. No. Particulars Additions (i) Income u/s 11(4A) receive....
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....onsidering it to be incidental to the main objective of the Society. 4. The ld. DR placed reliance on the orders passed by the lower authorities. 5. Vide the impugned order, the ld.CIT(A) observed that the assessee trust declared receipts from hiring of conference and auditorium facility of a sum of Rs. 14,45,953/- (AY 2017-18) [Rs. 19,35,253/- (AY 2018-19) and Rs. 22,25,520/- (AY 2020-21)] and also furnished the copy of guidelines for hiring the premises of the Society for conferences and, in this regard, the assessee contended that the conference hall was not given to any person and for every purpose. The ld.CIT(A) observed that this contention of the assessee is quite contradictory to the guidelines issued by the assessee because, ....
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....r the purpose in Form 10 and reasons for shortfall in Form 9A. So, the assessee has accumulated funds without reasons or specific purpose and claimed exemption u/s 11(2) in the return of income, whereas, as per audit report in Form 10B has claimed under clause (2) of Explanation to sub-section (1) of section 11 of the Act and also erred in appreciating that the claim of accumulation was disallowed primarily on the ground of late filing of Form 10. 7. We have carefully perused the impugned orders in which the ld.CIT(A) observed specifically that it is an admitted fact that when the scientists make any research or noting of any studies, the institution has to publish it and maintain the archives of such scientific studies. So the publicati....