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TMI Blog2016 (5) TMI 1026X X X X Extracts X X X X X X X X Extracts X X X X ..... tion after taking a reserve price. This activity cannot be said to be a charitable activity. In view of the above discussion, we do not find merit in the contentions of the assessee that there was no profit intention in the activities of the assessee. Therefore, it is not entitled for charitable status. The income has to be assessed under the normal provisions i.e. under sections 28 to 44 of the Income Tax Act. The assessee is not a “charitable institution”, therefore, it is not entitled for the alleged deduction at 15% from the receipt provided in section 11(1)(a). In other words, benefit of section 11 is not available to the assessee. Quantification of income of the assessee - Held that:- Keeping in view various discrepancies in determination of total income by treating the assessee as business entity and the stand of the respective parties, we deem it appropriate to set aside all the impugned orders and restore the issues to the file of the AO. The ld.AO shall treat the assessee as an “AOP” and determine the taxable income of the assessee under sections 28 to 44 of the Income Tax Act. The ld.AO shall compute the income under the normal provisions of the Income Tax Act, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and on facts in confirming action of AO treating the appellant trust as an AOP and framing the assessment on an unrealistic and erroneous figure of ₹ 3,59,95,83,000/- 3. Ld. CIT (A) erred in law and on facts in confirming action of AO refusing exemption u/s 11 and assessing income of the appellant u/s 28 to 44 of the Act. Both the lower authorities failed to appreciate the fact that the proviso to section 2 (15) was not applicable to the appellant and exemption claimed u/s.11 of the Act ought to have been granted. 4. Ld. CIT (A) erred in law and on facts in not appreciating the fact that the appellant was not engaged in any commercial / business activity but was carrying out charitable activity in accordance with its objects for which Registration u/s 12A of the Act was effected as per decision of the Hon'ble Income tax Appellate Tribunal in the case of appellant. 5. Ld. CIT (A) erred in law and on facts in confirming action of AO in disallowing deduction claimed of ₹ 42,21,17,250/- being 15% of the receipts as provided in section 11(1 )(a) of the Act. Ld. CIT (A) ought to have granted the deduction by deleting the disallowance made by AO. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lighted in the written submissions. 13. Levy of interest u/s 234A, 234B, 234C 234D of the Act is unjustified. 14. Initiation of penalty proceedings u/s 271(l)(c) of the Act is unjustified. 4. A perusal of the grounds would indicate that these are argumentative and descriptive in nature. With the assistance of the ld.representatives, we had a glance over the issue raised in the grounds and find that multiple fold of grievances raised by the assessee are required to be segregated in two compartments. In the first compartment, the focus of inquiry would be in the area, whether the Revenue authorities have erred in holding that as per proviso to section 2(15) of the Act, the assessees activities do not fall within the ambit of expression charity employed in this section, and further erred in assessing the income of the assessee under normal provision i.e. sections 28 to 44 of the Act by treating it as AOP instead of assessing it under section 11(2) of the Income Tax Act claimed by the assessee. If this fold of grievance is being redressed by this Tribunal, then all the impugned orders are to be restored, and the AO would be directed to reframe the assessment. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harging of high premium is an inbuilt characteristic of AUDA, which reveals profit motive even at the planning level. Under such circumstances, you are required to show cause as to why the activities of AUDA pertaining to sale (lease) of land at very high premium be not regarded as commercial activity (and not a charitable activity). Yon are required to show cause as to why deduction u/s.11 of the Act, claimed by AUDA be not denied under such circumstances and income of the trust be brought within the purview of taxation as per normal provisions of the Act (section 28-44). Considering the fact that the object of AUDA is advancement of any other object of general public utility , and the business receipts are more than ₹ 10,00,000/- for the year under consideration, you are required to show cause as to why the deduction u/s 11 of the Act be not denied when read with Proviso 2 of section 2(15) of the Act. Yon are herein/ given an opportunity to furnish Profit and Loss Account and Balance Sheet of AUDA as per commercial parlance in accordance with the prevailing accounting standards. 6. The assessee has filed detailed submissions, which has been reproduced by the ld.AO in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gination can such an activity be called as charitable activity. This is a purely commercial activity with no element of charity and the only motive being profit motive. The assessee has heavily relied on the Gujarat Town Planning and Urban Development Act in its submission. The same Act has referred to the assessee as a corporate body (section 22(3)) in the very chapter which talks about the constitution of AUDA and similar authorities. So, AUDA is in fact a corporate body as per the Gujarat Town Planning and Urban Development Act, hence the activities being undertaken by AUDA are also considered as commercial/ business activities Section 23A even talks about entrusting of powers and fu rations of AUDA and similar minorities to the government companies. So, the AUDA is considered as homologous to a company in the Gujarat Town Planning and Urban Development Act, which is being referred by the assessee in the entire length of its submission in its support. By the very logic/ rationale also, the charitable activity refers to providing some amenities to the needy people at a reasonable price. In the instant case, the amenities (land) have been acquired from the common peopl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtaining to advancement of any other object of general public utility should not be business income. So, despite the fact that the assessee has applied the entire income earned out of premium in town planning scheme only, but still considering the fact that giving of land on lease and charging of huge premium is a commercial/ business activity, therefore the activity of the assessee does not come in the category of charitable purpose as per the provisions of section 2(15) of the Act. The total receipts out of the activity of giving land on leasehold for the year under consideration is more than ₹ 10,00,000/- (Rs.13,45,32,000/- to be precise). In addition to the above, the assessee's registration u/s 12AA of the Act has been cancelled by the DIT (E), Ahmedabad vide order dated 05.02.2010. 2.12 In the light of discussion in the preceding paragraphs, it is held that the assessee's activities does not qualify the definition of charitable purpose, as laid down in section 2(15) read with proviso-1 and proviso-2 of the Act. Hence, deduction claimed by the assessee u/s 11 of the Act is disallowed and added to the income of the assessee. The assessee is her ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to carry out developmental activities for the public at large and not to earn income. It was also submitted that the assessee is not there to generate income and distributes to anybody but it is only for developmental activities which needs to be spent as per the abovementioned Act. The assessee also pointed out that Chapter V of the Act which deals with Town Planning Scheme. As per this Chapter, the assessee is empowered to make town planning schemes for the development of any area. It was also pointed out that under the sub-clause, it is categorically provides that the proceeds from sale of land shall be used for the purpose of providing infrastructural facility .. 8. On due consideration of the submission of the assessee, the ld.CIT(A) has rejected the stand of the assessee. We deem it appropriate to take note of this finding. It reads as under: 4.5 I have carefully considered the assessment order and submissions made in this regard. I have also perused the various judgments cited by the appellant in support of the grounds raised by it. I find that appellant has raised a fundamental question that benefit of section 11 12 cannot be denied if the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he local authority or authorities and other statutory authorities functioning in the urban development area in matters pertaining to the planning development and use of urban land; (v) To control the development activities in accordance with the development plan in the urban development area; 4[(v-a) to levy and collect such security fees for scrutiny of documents submitted to the appropriate authority for permission for development as may be prescribed by regulation;] (vi) To execute works in connection with supply of water, disposal of sewerage and provision of other services and amenities: 1[(vi-a) to levy and collect such fees for the execution of works referred to in clause (vi) and for provision of other services and amenities as may be prescribed by regulations;] (vii) To acquire, hold, manage and dispose of property, movable or immovable, as it may deem necessary: (viii) To enter into contracts, agreements or arrangements, with any local authority, person or organization as the urban development authority may consider necessary for performing its functions; (ix) To carry any development works in the urban development area as may be assigned to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO. Therefore, it is clear that the provisos to Sec 2(15) of the Act are squarely applicable to the facts of the case. The two major characteristics of any business activity are profit motive and continuity. From the purchase and sale details pertaining to A.Y. 2007- 08, 2008-09 and 2009-10 (reproduced in para 2.3.1 of the Assessment order), it is clear that the assessee is engaged in the business of giving land on leasehold at a high premium on a continuous basis and on profit basis. 4.5.5 The contention of the assessee that the said income has been applied to for town planning activity only as per its objects, is not relevant since the income earned is business income and the application of income becomes irrelevant, in view of the proviso to Sec 2(15) of the Act. The two provisos which were inserted in the definition of charitable purpose u/s 2(15) of the Act w.e.f A.Y. 2009-10, are reproduced here under: Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (URO) (b) Jammu Development Authority v. CIT, Jammu* ITAT, Amritsar Bench [2012] 23 Taxmann.com 343 (Asr.) (c) Punjab Urban Planning Development Authority V; CIT-1, Chandigarh, ITAT Chandigarh Bench B' [2006] 156 TAXMAN 37 aO (CHD.) (MAG.) Wherein it has been held that The assessee acquired land at nominal rate sand after developing the same, sold the same land on high profit which could not be said to be a charitable activity. (156TAXMAN 37 ) In the case of Jalandhar Development Authority v. CIT, the ITAT Amritsar Bench [2010] 35 SOT 15 (ASR.)(URO) held that, The major thrust of the assessee was that its activity was of general public utility as it satisfied the need for housing accommodation for the section of the people of the State of Punjab and was also doing planning and development of the cities, towns and villages. The said contention could not be accepted because a charitable institution provides services for charitable purposes free of cost and not for a gain. In the present scenario, the similar activities were performed, by big colonizers/developers who were earning a huge profit. If this registration was granted, then a Pandora b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der normal circumstances, its income has to be assessed by giving benefit of sections 11, 12 and 13 of the Income Tax Act, but by invoking proviso appended to section 2(15) of the Income Tax Act, the ld.AO did not grant to it the status of a charitable institution and he assessed its income under regular provisions i.e. under sections 28 to 44 by treating the assessee as an AOP . Thus, firstly, both the representative have addressed their arguments on this aspect i.e. whether the assessee is to be denied charity status after insertion of proviso to section 2(15) of the Income Tax Act w.e.f. 1-4-2009 i.e. Asstt.Year 2009-10. 10. Shri S.N.Soparkar, ld. senior counsel for the assessee, while impugning the orders of the Revenue authorities had appraised us the historical background of the assessee. He submitted that in order to achieve the object of orderly development of various areas within the city and vicinity, the State Legislative Assembly had enacted Gujarat Town Planning And Urban Development Act, 1976 (hereinafter referred to as the TP Act for short). The preamble to the said TP Act contemplates that this Act has acted to consolidate and amend the law relating to mak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ception upto the Asstt.Year 2008-09, the assessee s income was exempt either under section 10(20A) of the Act or by the operation of registration granted under section 12AA in favour of the assessee. 12. During the Asstt.Year 2009-10, the stand of the Revenue is that notwithstanding of the finding in all the orders of the earlier years to the effect that the assessee is a charitable institution on account of amendment in the definition of charity inserted by proviso to section 2(15) from 1.4.2009 would disentitle the assessee for a charitable status. The Revenue also referred section 13(8) of the Income Tax Act. The operative force of Revenue s reasoning is that the activity of purchase and sale of land is a business activity, and therefore, proviso to section 2(15) denude the assessee to claim charity status. The ld.counsel for the assessee had apprised us the powers and functions of an authority established under section 22 of the TP Act. With the help of sections 23, 40, 48A, 91(1)(a) of the T.P.Act, he demonstrated as to how a urban development authority conceive concept of orderly development of an urban area. Specifically on the strength of section 40 of the T.P.Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee, it would be wrong on the part of the Revenue to deny the status of charity on such an erroneously premises. 13. On the strength of speech of Finance Minister in the Parliament while addressing the amendment in section 2(15) as well as on the strength of CBDT Circular No.11 of 2008, the ld.counsel for the assessee submitted that it was very clear that the charitable trust/institution genuinely engaged in public work would not be affected by this amendment. 14. In his next fold of submissions, he apprised the meaning of expression trade, commerce or business employed in the proviso to section 2(15) of the Income Tax Act. In order to buttress his contention, he relied upon the judgment of the Hon ble Gujarat High Court in the case of DCIT (Exemption) Vs. Sabarmati Ashram Gaushala Trust, 362 ITR 539. He also relied upon the following decisions: i) Aligarh Development Authority, IA No.255/Agra/2013; ii) Andhra Pradesh Urban Infrastructure Fund, ITA No.549/Hyd/2013; iii) Bagalkot Town Development Authority, ITA No.1151/Bang/2012; iv) Lucknow Development Authority, 38 taxmann.com 246 (All.) v) Institute of Chartered Accountants of India, 13 taxmann.co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... books of accounts for business activities under subsection (4A) of the Section 11 of the Act. Certain instrumentalities of the State like local authorities, housing boards, urban development authorities, various boards like tea board, coffee board, rubber board etc. were enjoying blanket exemption from tax under section 10 of the Act and their incomes did not form part of the taxable income. These entities were not regarded as charitable institutions subject to regime of section 11 of the Act, but were given complete exemption under section 10 on their own right. He further contended that the assessee was enjoying this exemption under section 10(20A). This section allowed the exemption to any authority constituted by or under any law enacted for the purpose of planning and development or improvement of cities, town or villages. It was omitted by the Finance Act, 2002 w.e.f. 1.4.2003. The exemption enjoyed by the housing board was taken away. The exemption enjoyed by sports bodies like cricket, hockey, football etc. under section 10(23), the authority for marketing commodities under section 10(29) was also withdrawn under section 10(29) was also withdrawn by Finance Act, 2002. Simi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture of trade or business. The benefit would be denied irrespective of the charitable nature of the objects of the trust, and irrespective of whether or not the trust or institution is entitled to registration. If the activities of the assessee are in the nature of trade or commerce, and its receipts exceeds ₹ 25.00 lakhs in the previous year, then the assessee would not be entitled for charitable status. In order to appraise us meaning of expression activities in the nature of trade and commerce, the ld.counsel for the Revenue relied upon the order of the ITAT, Goa Bench in the case of Entertainment Society of Goa, ITA No.90 of 2012. He placed on record copy of the Tribunal s order. He pointed out that in view of scheme of the Act, focus of inquiry for deciding the issue in the present appeal should; (i) whether any of the activities of the assessee are in the nature of trade, commerce or business; (ii) whether the assessee is rendering any service for a fee, cess or other consideration, and (iii) whether the receipts from such activities cross the threshold of ₹ 25 lakhs during the year under appeal. The ld.counsel for the Revenue submitted that if the aforesaid eleme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tate developer. III. As regards the acquisition of the aforesaid land, it is submitted that the land does not come free of cost to the appellant. The scheme as envisaged under the GTP and UD Act is just like consolidation proceedings as the land belonging to various persons covered by the scheme is first put into a common pool and then the plots are reallocated to different persons and for different purposes including the sale by the Authority (the appellant). The amount of compensation payable to each individual owner is determined in the notified scheme itself by virtue of the provisions of section 52(3)(iii) which reads as under: Section 52(3): In the final scheme, the town planning officer shall: i. x-x-x 11. X--X--X iii. estimate the portion of the sums payable as compensation on each plot used, allotted or reserved for a public purpose or for the purposes of appropriate authority which is beneficial partly to the owners or residents within the area of the scheme or partly to the owners or residents within the area of the scheme or partly to the general public which shall be included in the cost of the scheme. The cost of the scheme (deve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proved by the State Government. It is creating a number of infrastructure facilities and public utility services are being rendered. These services are also being provided for a fee or consideration. Every part of the cost of development is recovered from the owners of the plots of land. The amount of final compensation is determined after making adjustment of the development cost. All kinds of civic amenities/services that are being provided are not free but for a cost. Hence, the second limb of the proviso to section 2(15) is also satisfied. 26.Supposing, after notification of the scheme, the law had stipulated and the government had decided to outsource the development work to a third party (a infrastructure company) with similar rights and the entitlements as given to AUDA, could it be urged that the Infrastructure Development Company doing the same work as AUDA was not engaged in activity in the nature of trade or business. It would have definitely constituted its business income. It is, then, not possible to urge otherwise to suggest that the activity is not in the nature of trade or business. The nature of the activities of the appellant are no different from that of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... carried by an authority, it is not in the nature of business. 32.It may be reemphasized at this stage that the requirement of the provisions is not that there should be a business per se but the only requirement is that the activity is in the nature of business or trade. 33.The word Business as defined in section 2(13) is of wide import and would cover the activities of the appellant. Besides, the condition stipulated in the Proviso to section 2(15) is not the carrying of business per se but only the activity being in the nature of trade or business which further widens the width and amplitude of the proviso. Institute of charted Accountants of India (347ITR 99 (Del)) GSI India (360 ITR 138(Del)) (for the limited purpose of import of the words trade or business ) 34. It may, thus, be appreciated that the appellant is carrying on activity in the nature of trade or business and covered under Section 13(8) of the Act read with proviso to Section 2(15) of the Act. 17. The ld.counsel for the Revenue, thereafter, apprised us as to how the decisions relied upon by the assessee are not applicable on the given facts of the present case. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... main factors viz. (i) activity should be for advancement of general public utility, (ii) activity should not have any activity in the nature of trade, commerce and business, (iii) the activity should not involve rendering of any services in relation to any trade, commerce or business, and (iv) activity in clause (ii) and (iii) should not be for a cess, fee or any other consideration, aggregate value of the receipts from the activity under clause (ii) and (iii) should not be exceeded the amount specified in the second proviso i.e. ₹ 25 lakhs. According to the Hon ble Delhi High Court, the earlier test of business feeding or application of income earned towards charity, are no longer relevant because of the amendment. 20. We are called upon to construe the meaning of expression trade, commerce or business employed in the proviso and find out whether the activity of the assessee falls within the ambit of this expression. While appraising us the meaning of this expression, efforts at the end of the assessee was that any activity will be deemed to be in the nature of trade, commerce and business, only if the same is carried out with intention of profit. In other words, predom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le Delhi High Court, where the Hon ble Court had examined the expression trade, commerce or business elaborately in the case of The Institute of Chartered Accountants of India (supra). This is even taken note in the case of GSI India (supra). It is worth to note the analysis noticed by the Hon ble Delhi Court in the case of GSI India (supra) as under: Scope of Trade, Commerce or Business 15. The key words, namely; trade, commerce and business were enumerate and elucidate in Institute of Chartered Accountants of India Anr. Vs. Director General of Income Tax (Exemptions) Delhi Ors.(Supra) as under:- Trade, as per the Webster's New Twentieth Century Dictionary (2nd edition), means, amongst others, a means of earning one's living, occupation or work. In Black's Law Dictionary, trade means a business which a person has learnt or he carries on for procuring subsistence or profit ; occupation or employment, etc. The meaning of commerce as given by the Concise Oxford Dictionary is exchange of merchandise, specially on large scale . In ordinary parlance, trade, and commerce carry with them the idea of purchase and sale with a view to make profit. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble of producing profit. To regard an activity as business, there must be a course of dealings continued, or contemplated to be continued, normally with an object of making profit and not for sport or pleasure (Bharat Development P. Ltd. v. CIT [1982] 133 ITR 470 (Delhi)). The third essential characteristic is that a business transaction must be between two persons. Business is not a unilateral act. It is brought about by a transaction between two or more persons. And, lastly, the business activity usually involves a twin activity. There is usually an element of reciprocity involved in a business transaction . In the said case reliance and reference was made to State of Punjab v. Bajaj Electricals Ltd. (1968) 2 SCR 536, Khoday Distilleries Ltd. V. State of Karnataka (1995) 1 SCC 574, Bharat Development (P) Ltd. v. CIT (1982) 133 ITR 470(Del), Barendra Prasad Ray v. Income Tax Officer (1981) 129 ITR 295 (SC), State of Andhra Pradesh v. H. Abdul Bakhi and Bros. (1964) 15 STC 664, State of Gujarat Vs. Raipur Manufacturing Company (1967) 19 STC 1(SC), Director of Supplies and Disposal Vs. Member, Board of Revenue (1967) 20 STC 398(SC) and Sarojini Rajah Vs. CIT (1969) 71 ITR 504 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Fund (supra) can be applied. The six indicia stipulated in Lord Fisher (supra) are also relevant. Each case, therefore, has to be examined on its own facts. The Hon ble Court, thereafter, made lucid analysis of expression business activity . The discussion contained in para-22 of the judgment is worth to note. It reads as under: 22. Business activity has an important pervading element of selfinterest, though fair dealing should and can be present, whilst charity or charitable activity is anti-thesis of activity undertaken with profit motive or activity undertaken on sound or recognized business principles. Charity is driven by altruism and desire to serve others, though element of self-preservation may be present. For charity, benevolence should be omnipresent and demonstrable but it is not equivalent to self-sacrifice and abnegation. The antiquated definition of charity, which entails giving and receiving nothing in return is outdated. A mandatory feature would be; charitable activity should be devoid of selfishness or illiberal spirit. Enrichment of oneself or selfgain should be missing and the predominant purpose of the activity should be to serve and benefit others. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sacrificed their 40% land, the potentiality of 60% would increase. In other words, relinquishment value, representing 40% of the land by the land owners, would be compensated by enhancing the value of balance 60% land being developed land in a township. It is also important to note that this method is not strictly applicable in all conditions. 25. The ld.counsel for the Revenue drew our attention towards section 52(3) of the T.P. Act. He pointed that the Town Planning Officer shall estimate the cost of this scheme (development) and the contribution to be levied on each owner of the plan is to be notified. The final amount of compensation payable to the owners of each plan or the recovery to be made from them is worked out by the authority. In other words, for example, a scheme has 50 plots of 500 sq.meters in a row. The Town Planning Officer would work out cost of developed plot. Thereafter, he will set off the cost equivalent to value of 40% of the land taken from the owners used in development of 500 plots. In case the cost of development is higher, then, the recoveries would be made from the land owners for taking 500 plots in their names. In case, cost is lower than the va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and charging fees. The assessee has not been charging nominal fees or selling the land at a nominal rate. It has been making money by putting the land on auction after taking a reserve price. This activity cannot be said to be a charitable activity. In view of the above discussion, we do not find merit in the contentions of the assessee that there was no profit intention in the activities of the assessee. Therefore, it is not entitled for charitable status. The income has to be assessed under the normal provisions i.e. under sections 28 to 44 of the Income Tax Act. 27. Now, we take the grounds of appeal in seriatim. 28. In the Asstt.Year 2009-10, the assessee has pleaded in ground nos.1, 2 and 3 that the ld.CIT(A) has erred in denying the benefit of sections 11 and 12 and assessing under sections 28 to 44 of the Income Tax Act, as an AOP . We have already held that the assessee is not entitled for a charity status, and therefore, it cannot claim the benefit of sections 11 and 12. Its income deserves to be assessed under sections 28 to 44 of the Income Tax Act, as a business entity. Thus, these three grounds are rejected. 29. In ground no.4 again, the assessee has plead ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made addition of capital expenditure, and thereafter added the capital receipts also, which result double addition. The assessee has filed application under section 154 of the Act and highlighted these aspects. This application was dismissed by the AO, and appeal to the CIT(A) did not bring any relief to the assessee. According to the ld.counsel for the assessee, specific grounds, with regard to quantification of income, are being raised in ITA No.711/Ahd/2013 in the Asstt.Year 2009-10. This also has arisen out of the proceeding under section 154 of the Income Tax Act. When we confronted these issues to the ld. counsel for the Revenue, he agreed that all these issues are required to be re-adjudicated at the level of the AO. The ld.counsel for the assessee also agreed that the computation of income as a business entity ought to be decided afresh at the level of the AO. Keeping in view various discrepancies in determination of total income by treating the assessee as business entity and the stand of the respective parties, we deem it appropriate to set aside all the impugned orders and restore the issues to the file of the AO. The ld.AO shall treat the assessee as an AOP and determ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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