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TMI Blog2019 (2) TMI 171X X X X Extracts X X X X X X X X Extracts X X X X ..... r the facts and circumstances of the case Ld. CIT(A) was correct in deleting the addition of Rs. 80,00,000/- since the assessee has applied this income for purchase of residential house in the name of Chairman of the society and hence violated the Section 13(1)(c) of the Act, being benefit to related party u/s 13(3). This is in contravention to the provisions of Section 13(3) read with 13(1)(c)(ii) of IT Act. 2. Whether under the facts and circumstances of the case Ld. CIT(A) was correct in deleting the addition of Rs. 1,37,37,011/- made on account of disallowing the carry forward of accumulation under various heads as these funds have not been utilized till the end of 31.03.2010 which is evident from the statement of accumulation of fun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontained u/s 13(1)(c)(ii) of the Act, treated the application of income of Rs. 75,28,400/- for purchase of residential house for the Chairman not for charitable purpose, hence disallowed the same. AO also proceeded to hold that the assessee society is not qualified for exemption u/s 11 & 12 of the Act. AO further treated the amount of Rs. 4,71,600/- as surplus one and this accumulated amount cannot be carried forward on the ground that the exemption u/s 11 (2) of the Act has been denied and consequently made addition of Rs. 80,00,000/-. 3. AO further made addition of Rs. 1,37,37,011/- as accumulated funds under the heads 'building fund', 'school bus' and 'audio visual system' (Rs.1,05,00,000/-, Rs. 31,38,640/- & Rs. 98,371/- respectively) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e deed, available at pages 27 to 57 of the paper book, shows that the property in question has been purchased in the name of St. Thomas Orthodox Church (Society) Regd. through its Chairman, Fr. Shaji Mathews. It is also not in dispute that in the sale deed in question, PAN : AABTS8844F of assessee society has been mentioned. It is also not in dispute that in the appellate proceedings, remand report, available at pages 131 & 132 of the paper book, was called by ld. CIT (A). 8. In the backdrop of the aforesaid undisputed fact, when we examine aims and objects of the assessee society highlighted by AO at page 7 of the assessment order viz. "conducting dispensaries, schools, hostels, meeting halls, centers of social welfare, seminars, confer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on has not only been used for residential purpose of the Chairman of the Society but has been extensibly used for conducting workshop by the faculty members, for conducting Hindi workshop, to convene meetings of the academy's core committee etc., and these facts go to prove that the property in question was also being used in order to carry out the charitable activities by the society. So, we are of the considered view that the ld. CIT (A) has rightly deleted the addition of Rs. 80,00,000/- by holding that the assessee society is eligible for benefit of sections 11 & 12 of the Act. So, Ground No.1 is determined against the Revenue. GROUND NO.2 10. AO made addition of Rs. 1,37,37,011/- being the amount accumulated in earlier years under s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal CIT, the addition is not sustainable. So, the ld. CIT(A) has rightly deleted the addition, hence Ground No.3 is determined against the Revenue. GROUND NO. 4 12. AO made addition of Rs. 8,28,531/- on account of negative cash balance in the month of December and February, AO noticed from the cash book that in December and February, no cash was credited in the cash book but expenses was shown paid of Rs. 1,76,436/- and Rs. 6,52,095/- in the month of December 2009 and February 2010 respectively. It is the case of the assessee before the ld. CIT (A) and before the Bench that this confusion occurred due to misprinting in the cash book by computer, credit entries of the cash book were not printed and the credit in the cash book is primaril ..... X X X X Extracts X X X X X X X X Extracts X X X X
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