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TMI Blog2016 (1) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of rental income amounting to Rs. 6,72,30,455/-. 3. Facts of the case in brief are that the assessee filed the return of income on 28.03.2002 declaring Nil income. The assessment however was framed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act) on 11.11.2003 at an income of Rs. 26,03,64,279/-. Against the said assessment order the assessee preferred an appeal before the ld. CIT(A) who partly allowed the relief to the assessee vide order dated 14.01.2005. Against the said order the assessee preferred an appeal to the ITAT wherein vide order dated 15.04.2010 in ITA Nos. 263 & 1587/Del/2008, the matter was set aside to the file of the AO. On the direction of the ITAT, the AO proceeded to frame the assessment an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nual accounts though out of it Rs. 6,26,06,411/- has been shown as income in the computation of income of AY 2000-01 and balance........' 3 v) In the computation of income of FY 1999-2000 (AY 2000- 01), amount of Rs. 46,24,144/- has been shown as income on account of rent received for previous years not accounted for". Above rental incomes have already been disclosed in the computation of income filed with ITD (copy enclosed as annexure 1). Return of income filed with the ITD in form 3A vide acknowledgement receipt dated 28.03.2002 declaring income deductible u/s 11 Rs. 103,46, 89,830/- includes above rental income (copy enclosed as annexure 2). Contention of AO that computation of income filed does not include above income is factually i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from Other Sources Rupees Voluntary Contributions received during the year 66,34,45,918.00 Other Sources 30,40,13,357.51 Add: 1. Amount receivable on account of rent not accounted for 6,26,06,411.00 2. Amount of rent received for previous years not accounted for 46,24,144.00 37,12,43,912.51 Gross Total Income 1,03,46,89,830.51 Less: Income Exempt u/s 11 as per Audit Report in Form 10B 1,03,46,89,830.51 Total Income Nil It was submitted that when the assessee itself has included the rental income the addition made by the AO was not justified and the ld. CIT(A) rightly deleted the same. 9. We have considered the submissions of both the parties a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is found that out of the grant received from Government of India, sum of Rs. 58,85,314/- and Rs. 1,64,03,177/- have been reduced on account of being shown as fixed assets created. Since assessee is not registered u/s 12A of the IT Act, hence clearly even those amounts taken directly to the corpus A/c will not be allowable. 10.1 For this the assessee was asked vide note sheet entry dated 10.11.2003 as to why this amount of Rs. 2,22,88,491/- be not disallowed and added back to the income of the assessee. The assessee filed his reply vide letter dated 11.1.2003 stating that "the fixed assets created by Sports Authority of India should have been allowed as the assessee has its registration u/s 12A. But since the assessee is unable to produce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unts are eligible for deduction from income as the appellant holds registration us/ 12A of the Income Tax Act, 1961." 13. The ld. CIT(A) after considering the submissions of the assessee confirmed the addition by observing that unspent grant is the income of recipient. 14. Now the assessee is in appeal. The ld. Counsel for the assessee reiterated the submissions made before the ld. CIT(A) and further submitted that the assessee utilized the grants and created the assets. Therefore, the addition made by the AO and sustained by the ld. CIT(A) was not justified. He also referred to page nos. 8 & 11 of the assessee's compilation which are the copies of income & expenditure account and submitted that the assessee disclosed in the income & exp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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