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2018 (5) TMI 1310 - AT - Income TaxDisallowance u/s 11(2) - amount accumulated set apart for application to charitable or other purposes to the extent the said income did not exceed 15% of the income under Section 11(1)(a) - Held that - All the details pertaining to the said claim of ₹ 98,57,10,000/- u/s 11(1)(a) and ₹ 10,21,26,000/- u/s 11(2) were duly mentioned in Form No. 10 B and Form No. 10 BB which is apparent from page no. 129 and 132 of the assessee s paper book. In the present case, it is noticed the learned CIT(A) had not considered the contention raised by the assessee in right perspective and dismissed the appeal. Considering the totality of the facts deem it appropriate to remand this issue back to the file of the AO for adjudication in accordance with law, after proper verification from the material available on the record. We also direct to verify the amount of TDS which was claimed to be at ₹ 4,52,54,823/- while the amount considered was at ₹ 4,51,95,563/-. The AO shall provide a due and reasonable opportunity of being heard to the assessee.
Issues:
1. Disallowance under Section 11(2) of the Act 2. Disallowance under Section 11(1)(a) of the Act 3. Error in punching information in Form ITR-7 4. Ignoring Statutory Auditor's Reports and other evidence 5. Disallowances not made in preceding assessment years Analysis: Issue 1: Disallowance under Section 11(2) of the Act The appeal challenged the disallowance of ?10,21,26,000 made by the AO under Section 11(2) of the Income Tax Act. The assessee contended that the amount was duly reflected in Form No. 10 B and Form No. 10 BB, even though an error occurred in the ITR punching. The CIT(A) upheld the disallowance citing non-investment of the accumulated amount in modes specified under Section 11(5). The ITAT observed that all details were correctly mentioned in the relevant forms and remanded the issue back to the AO for proper verification. Issue 2: Disallowance under Section 11(1)(a) of the Act Another ground of appeal was the disallowance of ?98,57,10,000 under Section 11(1)(a) of the Act. The CIT(A) noted an arithmetical error in the application of income, leading to the dismissal of the claim. The ITAT found that the CIT(A) did not consider the assessee's contentions properly and remanded the issue for reevaluation by the AO. Issue 3: Error in punching information in Form ITR-7 The assessee argued that the error in punching the relevant amount in ITR-7 did not invalidate the claim, as the details were correctly furnished in other forms. The ITAT acknowledged the oversight and directed the AO to verify the details from the available records. Issue 4: Ignoring Statutory Auditor's Reports and other evidence The assessee submitted Statutory Auditor's Reports and other evidence to support their claim, which the CIT(A) allegedly ignored. The ITAT did not delve into this issue explicitly but remanded the case for reconsideration on other grounds. Issue 5: Disallowances not made in preceding assessment years The appeal highlighted that no disallowances were made in previous assessment years, and the consistent claim was being denied in the current assessment. While the ITAT did not provide a direct ruling on this issue, the case was remanded based on other grounds. In conclusion, the ITAT allowed the appeal for statistical purposes and directed a reevaluation by the AO, emphasizing proper verification and a reasonable opportunity for the assessee to present their case. The stay application was dismissed as the appeal was disposed of on merit.
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