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TMI Blog2012 (8) TMI 735X X X X Extracts X X X X X X X X Extracts X X X X ..... the CIT(A) with a direction to pass a speaking order with regard to the claims of the assessee for exemption under S.11/S.10(1) - Decided in favor of revenue for statistical purposes X X X X Extracts X X X X X X X X Extracts X X X X ..... ural activities and accordingly the CIT(A) should have estimated and made necessary disallowance. 8. The CIT(A) ought to have noticed that the assessee itself declared receipts on account of sale of coffee of Rs.6.61 crores and coffee powder of Rs.1.56 lacs, pepper Rs.40.03 lacs vide page 26 of Annual Report and that these activities are non-forest activities beyond the scope of objects of the corporation and accordingly not eligible for exemption. 9. The CIT(A) ought to have upheld the stand of the AO that the utilization of funds for activities relating to beedi leaves does not amount to 'general public utility' and hence, not entitled for exemption u/s. 11 on income of such activity and expenditure on such activity is also not allowabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e impugned assessment made in pursuance of that order of the Tribunal dated 26.10.2007, the assessing officer, rejecting the claims of the assessee for exemption of its income under S.11 and under S.10(1) of the Act, proceeded to complete the assessment on a total income of Rs.27,97,24,540, vide order of assessment dated 31.12.2008 framed under S.143(3) of the Act. 4. On appeal, the CIT(A), observing in para 4.3 of the impugned order that there was no direct correlation between the grounds of appeal preferred by the assessee and the additions made in the assessment order framed on 3.12.2008, proceeded to adjudicate the appeal in respect of each of the additions made by the assessing officer, since all the additions so made by the assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the action of the assessing officer in rejecting such claims. Further, this Tribunal in its decision dated 4.5.2012 in ITA No.875/Hyd/2011 in assessee's own case, considered the issues involved in the present appeal, on the appeal of the Revenue, and has held for the assessment year 2005-06, vide paras 20 to 24 of its order dated 4.5.2012 as follows- "20. We have considered the rival submissions and perused the orders of the lower authorities and other material on record. We find that the CIT(A) has passed a well reasoned speaking order, dealing with each aspect of the matter taken up by the assessing officer in the impugned assessment order for denying the claim of the assessee for exemption of its income under S.11 of the Act, and for ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licies laid down by the Central and State Governments from time to time. For these very reasons, even the rents paid by the assessee corporation for the lands taken on lease from the State Government cannot constitute violation of the provisions of S.13 of the Act. 21. Even with regard to the assessee's claim for exemption under S.10(1) of the Act in respect of agricultural income, we find no merit in the contentions of the Revenue in this appeal. The only aspect that clinches the nature of the agricultural income is whether agricultural operations were carried out or not. Once it is established that such agricultural activities are carried out by the assessee, assessee is entitled for exemption in respect of such agricultural income under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and Hindu Religious Institutions and Endowments Act, 1987, shall not render the assessee trust as a non-charitable one, and registration under S.12A of the Income-tax Act alone is enough for an assessee to claim exemption in respect of its income under S.11 of the Act. Since the order of the CIT(A) on this aspect is in consonance with this consistent view taken by the Tribunal on this aspect, we find no infirmity in the same. 24. In the light of the above discussion, we find that the present appeal of the Revenue is devoid of merit, and the same is accordingly dismissed." 9. In view of the above decision of the Tribunal in assessee's own case and considering totality of facts and circumstances of the case for the year under consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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