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TMI Blog2009 (11) TMI 951X X X X Extracts X X X X X X X X Extracts X X X X ..... hall take up Revenue's appeal in I.T.A. No. 426/Ind/2007 for assessment year 2003-04. 4. The general facts are that the assessee is a registered society, which was granted registration u/s 12-A on 2.5.2001, with effect from 1.4.2000. However, the same was cancelled vide order Dated 9.3.2006 by the ld. CIT(A), Bhopal, subsequent to denial of exemption u/s 10(23- C)(vi), the assessee filed revised return, wherein income was claimed as exempt u/s 11/12 of the Act, as the society was having a valid registration u/s 12AA at that point of time. However, the A.O. examined such revised return in the background of the fact that the assessee was not having exemption u/s 10(23C)(vi) and exemption u/s 11 & 12 was also not available at that point of ti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O. further added a sum of ₹ 10 lakhs as unexplained cash credit. The A.O. also added a sum of ₹ 8,25,000/- being amount received by the society on sale of a part of the building for want of proper explanation. Similarly, the assessee had given certain donations, which were also added back to the income of the society. The A.O. also added preliminary expenses written off by the assessee. Finally, the A.O. examined the various loans given by the assessee to various societies without interest and found that founders/members of those societies were also office bearers of this society, hence, he held that it was a case of diversion of fund without interest and, therefore, he, not only disallowed the interest on borrowed funds, but al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law and in the present case, the A.O. had not got this opportunity. We are afraid that this contention of the ld. CIT DR does not have any merit, because the A.O. has made specific disallowances/additions by applying provisions of Section 13 of the Act, which, by itself, means that the A.O. has exercised such authority even without the impugned order of the Tribunal in the course of framing of the assessment. Accordingly, the same is rejected. 6. Now, we shall deal with the specific grounds raised by the Revenue. 7. Ground no. 1 reads as under :- "On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deleting the addition of ₹ 3,70,48,502/- made by the Assessing Officer on account of excess of income over ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e rates. Hence, there is no question of any disallowance and application of provisions of Section 13 of the Act. Accordingly, we confirm the order of the Ld. CIT(A) in this regard. 12. Ground no. 3 reads as under :- "On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deleting the addition of ₹ 10,00,000 made by the Assessing Officer on account of unexplained cash credit." 13. As regards the issue raised in ground no.3, it is noted that an advance of ₹ 10 lakhs was given by Dr. Sunil Kapoor to Mr. Rohit Jain for purchase of land for the society, who has returned this money directly to the society as the land owned by him was not found suitable. The identity of the payer is established, capacity is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nses are not required for the objects of the assessee, as without incorporation of the society, no other objects can be achieved. It is also noted that even it is added then the application of surplus fund would be more than 85 %. Thus, having no consequence on the assessment of the society. Hence, we are of the view that the Ld. CIT(A) has rightly allowed such write off. Thus, this ground of the Revenue is also dismissed. 18. Ground Nos. 7 & 8 read as under :- (7) On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deleting the addition of ₹ 1,97,121/- made by the Assessing Officer on account of interest disallowed. (8) On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in dele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her hold that the assessee's income is liable to exemption u/s 11 & 12 of the Act. Thus, these grounds of the Revenue's appeal is also dismissed. 20. In the result, the appeal filed by the Revenue is dismissed. 21. Now, we shall take up the Revenue's appeal in I.T.A.No.439/Ind/2007. 22. Ground no. 1 reads as under :- On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deleting the addition of ₹ 4,34,83,912/- made by the Assessing Officer on account of excess of income over expenditure under normal provisions and thereby allowed the benefit of exemption under Section 11 and 12 of the Income-tax Act. 23. Both the parties agreed that the issue raised in ground no.1 is identical to ground no.1 of Revenue' ..... X X X X Extracts X X X X X X X X Extracts X X X X
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