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TMI Blog2010 (11) TMI 965X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee s appeal the following grounds have been raised: 1. That the Learned CIT(A) erred in holding that the appellant trust's income to the extent of ₹ 35,92,411/- was liable to tax under the provisions of Income Tax Act 1961. 2. That the Learned CIT(A) ought have held that the entire income of the appellant amounting to ₹ 80,41,981/- was exempt u/s 1O(23C)(iiiae) of the I.T. Act 1961 which also included the actual expenditure of ₹ 38,62,873/- incurred for the purposes of charitable objects laid down in the deed of trust dated 16-3-1981. 3. Without prejudice to the above contentions the learned CIT (A) further failed to hold that dividend income of ₹ 61,46,750/- and receipts from redemption of mutual fun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2,64,012/- u/s 10 of the Act. The Assessing Officer found from the accounts filed by the assessee that the gross receipts of ₹ 80,41,981/- was consisted of income of ₹ 3,42,004/- from Hospital, ₹ 14,35,964/- from bank interest and remaining amount i.e. ₹ 62,64,012/- from dividend on investments. According to the Assessing Officer, the income earned from investment was not utilized for philanthropic purposes and was earned just for profit and increase in the assets. The Assessing Officer did not find merit in the claim of the assessee that income earned from investments was received on behalf of the hospital and the same qualified for exemption u/s 10 of the Act. The AO has held as under:- 3.1 In this case, the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e = 62,64,012 - 84,447 = ₹ 61,79,565/- . 5. The assessee carried the matter to learned CIT(A) and submitted that the assessee trust is existing solely for philanthropic purposes within the definition of Section 10(23C)(iiiae) of the Act and not for purposes of profit. It was further stated that the income of the trust in the earlier years was exempted from tax under section 10(22A) and after amendment w.e.f. 01.4.1999 the trust income was exempted u/s 10(23C)(iiiae) of the Act. It was claimed that the income from hospital, dividend, interest and redemption of mutual funds did not exceed the amount of Rs. 1 crore under rule 2BC(1) and was within the ambit of section 10(23C)(iiiae) of the Act and that the income/investments, dividen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugh could not controvert the aforesaid contention of the learned counsel for the assessee, however, submitted that the learned CIT (A), without affording any opportunity of being heard to the Assessing Officer, allowed exemption u/s 11 of the Act to the assessee inspite of the fact that the assessee only claimed the exemption u/s 10(23C) (iiiae) of the Act. 7.1 During the course of hearing both the parties agreed that it would be fair and reasonable to remand the issue case to the file of the Assessing Officer for fresh adjudication in accordance with law. 8. We have considered the rival submissions and carefully gone through the material available on the record. In the present case, it is noticed that the Assessing Officer did not co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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