9911796707
TMI Blog2012 (11) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... ther Ld CIT(A) has erred in deleting addition of Rs. 70,97,365/- made on account of retention money which was not payable during the previous year. 3. At the outset of hearing, the Ld. A.R. raised a preliminary objection against the very maintainability of the present appeal on the basis that that the first appellate order showing the taxable income at nil is not appealable as it has been preferred in violation of CBDT Instruction and the provisions laid down u/s. 268A of the Act. In this regard, the Ld. A.R also furnished order u/s. 250 giving effect to the order of first appellate authority by the A.O wherein taxable income has been shown as nil. 4. The Ld. D.R. on the other hand opposed the above objection on the basis that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... money was not payable during the previous year, hence it was not an ascertained liability of the year. The Ld CIT(A) while deleting the addition of Rs. 70,97,365/- has failed to appreciate that the money retained was not utilized or paid during the year and thus liability to that extent had not capitalized during the year. 8. The Ld. A.R., on the other hand, tried to justify the first appellate order. He submitted that there is no dispute that the assessee society is a registered Society u/s. 12A of the I.T. Act. There are around 1000 students studying in Colleges being run by the assessee and sufficient numbers of students are availing hostel. Ganesh temple is in the campus. It was constructed for betterment of life, hence was meant for a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... moting education or learning. The A.O. was not satisfied with this explanation of the assessee and held that these funds were utilized by the assessee society for the public at large. She accordingly disallowed the amount spent on construction of temple at Rs. 34,18,480/- as well as 1/5th of the consultancy charges of Rs. 28,87,772/- resulting into an addition of Rs. 39,96,034/-. The Ld CIT(A) has deleted said addition on the basis that the surrounding area of the temple is being utilized for activities aimed towards betterment of life of students. He observed that the surrounding area of the temple is being actually used by the students for their activities like meditation, yoga lessons, jogging, physical exercises etc. Before the Ld CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as charitable activity are also carried out for the benefit of religious community, or caste, clause (b) would have no application in such a case. Anyway in the present case, we find that the Ld CIT(A) has confined the exemption excluding the proportionate consultancy charges to the actual cost of the temple. There is no dispute that surrounding area of the temple is being used by students of all the community and caste for their activities like meditation, yoga lessons, jogging, physical exercise etc., Under these circumstances, we are not inclined to interfere with the first appellate order. The same is upheld. The grounds 1 to 4 involving the issue are thus rejected. 11. Issue no. 2 is relating to the addition of Rs.70,97,365/- m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which may allow the appellant to pay the total amount in parts - partly at present and partly in future. The fact that the appellant has accepted the bill as such is sufficient to prove income equivalent to the amount shown in the bill raised by the contractor and accepted by the assessee has been applied for the objects of the Trust. The Ld CIT(A) was also of the view that the terms of payment relating to retention money all the appellant was to retain certain amount of payment till a future date, but in no way mitigate the liability of the appellant which arises as soon as the billed amount is entered by it. 12. Before the Tribunal, the Ld. D.R. has basically placed reliance on the assessment order. The Ld. A.R. on the other hand has tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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