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TMI Blog2016 (1) TMI 709X X X X Extracts X X X X X X X X Extracts X X X X ..... r.w.s. section 13(1)(d) of the Act. The ld. DR could not controvert the above findings of the ld. CIT(A). Accordingly, we find no infirmity in the order passed by the ld. CIT(A) and dismiss the ground raised by the Revenue. - Decided in favour of assessee Loan given to Pavanatma Provincial House, Kerala in violation of section 13(1)(d) - CIT(A) rejected revenue conclusion of violation u/s 13(1)(d) - Held that:- The interest free loan given by the assessee society to other society having similar objects and registered under section 12A of the Act does not violate section 13(1)(d) read with section 11(5) of the Act as the said loan was neither an investment nor a deposit. Accordingly, the ratio lay down by the Hon’ble Delhi High Court in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eedings, the Assessing Officer has observed that the assessee has debited Rs..25,00,000/- and Rs..20,00,000/- as sports fund and building fund respectively and claimed them as expenditure. When the assessee was informed that the above sums were not entitled to exemption under section 11 of the Act, the AR of the assessee filed a revised computation excluding the above sum of Rs..45,00,000/-, but made an alternative claim of Rs..75,00,000/- being advance paid for purchase of land as application. The Assessing Officer has observed that though the claim of the assessee is acceptable, he was of the opinion that the quantum of claim needs to undergo a change. The Assessing Officer was of the opinion that the unutilized surplus of assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly supported the order passed by the ld. CIT(A). 7. We have heard both sides, perused the materials on record and gone through the orders of authorities below. In the assessment order, the Assessing Officer has denied exemption under section 11 of the Act for the investment in chits on the ground that it is in violation of section 11(5) r.w.s. 13(1)(d) of the Act. The ld. CIT(A), after considering the written submissions and considering the issue at length, has observed as under: 4.1. Regarding the investment in chits, the exemption u/s 11 was denied to the assessee for the AY 2010-11 in the assessment order dated 18.03.2013. Because of this finding, the assessments for AYs 2006-07 and 2007-08 were re-opened specifically to consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R could not controvert the above findings of the ld. CIT(A). Accordingly, we find no infirmity in the order passed by the ld. CIT(A) and dismiss the ground raised by the Revenue. 9. With regard to loan of Rs..40,00,000/- given to Pavanatma Provincial House, Kerala, the Assessing Officer has held that it is in violation of section 13(1)(d) of the Act. The Assessing Officer has further observed that the recipient of the loan is an interested person as per section 13(3) of the Act, it also violates section 13(1)(c) of the Act. The ld. CIT(A) has observed that the recipient of the loan of Rs..40,00,000/- M/s. Pavanatma Provincial House was a charitable organization registered under section 12A(a) of the Act. The loan of ₹ 40 lakhs was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pavanatma Provincial House has been addressed to the assessee seeking loan of Rs..40 lakhs from the assessee trust is only for the purpose of reconstruction work of St. Don Bosco Girls High School, Kodakara. It clearly indicates existence of school run by Pavanatma Provincial House as one of its objects and the assessee is also having similar objects and submitted that the Hon ble Delhi High Court decision in the case of DIT(E) v. ACME Educational Society 326 ITR 146 is squarely applies to the facts of the present case. He further submitted that all the particulars as filed before the Tribunal in the paper book were duly furnished before the authorities below. We find force in the arguments of the ld. Counsel for the assessee. Initially, M/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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