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TMI Blog2012 (12) TMI 637X X X X Extracts X X X X X X X X Extracts X X X X ..... affidavit and found that there is justifiable reason for the delay of 10 days in filing appeal before this Tribunal. Hence, we condone the delay and admit the appeal for disposal. 3. Briefly, the facts are the assessee is a trust registered u/s 12 of the Act. For the assessment year under appeal, the assessee filed its return of income claiming exemption u/s 11 of the Act. In course of the assessment proceeding the assessing officer on examining the books of accounts found that though the assessee had earned interest income of Rs.1,80,64,453 on fixed deposits during the year the entire amount was claimed to have been accumulated u/s 11(1)(a) and u/s 11(2) excepting expenditure of an amount of Rs.10,500 spent towards Audit fees. Wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... horisedly transferred without taking them to corpus fund account. 4. The AO further concluded that the assessee has diverted funds of the trust in favour of persons in violation of sec. 13(1)(c) read with sections 13(2) and 13(3)(b of the Act. On the aforesaid conclusion the assessing officer rejected assessee's claim of exemption u/s 11 of the Act and completed the assessment by determining total income at Rs.1,80,53,950/-. 5. The assessee being aggrieved of the assessment order filed an appeal before the CIT (A). Before the CIT (A), it was contended on behalf of the assessee that it has met all legal requirements with regard to accumulation of income which was also invested in eligible investments. It was submitted that due to oversight ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee. 7. Learned DR strongly supporting the reasoning of the AO submitted that accumulation of fund without any purpose cannot be exempt u/s 11. It was further submitted that when books of accounts and the balance sheet does not reflect the acquisition of assets like computers and other materials the assessee's claim for payment made towards purchase of these equipments cannot be accepted. 8. The leaned AR for the assessee reiterating the stand taken by the assessee before the CIT (A) submitted that the assessee is a trust created by the Govt., of AP for reduction of vulnerability. It had utilised the funds towards purchase of equipments which were necessary for reducing the hazard caused by cyclone. It was contended by the ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... show the computers and other equipments as asset. A lapse of such magnitude cannot be wished away light heartedly as an oversight of the accountant. More so, when the assessee claims itself to be a trust promoted by the Government. The invoices raised by M/s Silicon Graphics (India) Pvt. Ltd., towards sale of computers and equipments were also in the name of Govt., of AP, Disaster Management Unit, Planning Deptt., and not in the name of assessee. These facts have not at all been examined by the CIT (A) while deciding the appeal. The CIT (A) has failed to appreciate the distinguishing facts while following the order passed by the ITAT, Hyderabad Bench for the assessment year 2003-04. In CIT vs. Durga Prasad More (82 ITR 540) the Hon'ble Sup ..... X X X X Extracts X X X X X X X X Extracts X X X X
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