9911796707
TMI Blog2013 (1) TMI 989X X X X Extracts X X X X X X X X Extracts X X X X ..... bject of general public utility which is a charitable object within the meaning of Section 2(15) of the Income Tax Act, 1961. 2. On the facts and circumstances of the case and in law, the learned CIT(A) has grossly erred in holding that the Appellant Authority is a business entity earning profits and gains. 3. On the facts and circumstances of the case and in law, the learned CIT(A) has grossly erred in upholding the computation of income at ₹ 2,63,14,400/- by the AO, by rejecting the principle of diversion of funds to the Infrastructure Development Fund by an over-riding title as per the express order of the State Government. The appellant craves leave to add, alter, amend, or delete any grounds as and when advised." 2. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77; 9,43,846/- out of total interest of ₹ 1,19,56,810/-. The balance amount of ₹ 2,24,41,453/- and ₹ 1,10,12,964/- respectively was capitalized to infrastructure fund. Observing this, a show cause notice dated 15.09.2010 was issued to the assessee and the following query was made :- "Kindly refer to the subject mentioned above and the assessment proceedings in your case. In this regard it is observed that you are not enjoying Registration u/s 12A of the Income Tax Act, 1961 and your income is also not exempt under any provisions of the Act. The authority has also not been established to undertake charitable purpose and in fact no such purpose are being accomplished and as such the nature of income and receipts are purel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n not be more than pre-decided ratio. Earmarked fund creates no right to money when there is no right of authority on it and thus how the said receipts can be treated as income of the authority. It was further submitted that authority can not pay any salary or purchase any fixed assets out of infra fund other than infra purposes and after applying the notification, the authority lacks control over the disposition of the funds and that money cannot be part of authority's assets. The authority is having right to use for own purposes for 10% only of total receipts and, therefore, total receipts can not be treated as income of the authority. The AO however was not satisfied with the explanation of assessee and observed that all such receipts we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and have gone through the material placed on record. We find that the case of the assessee is squarely covered by the order of Hon'ble Tribunal in ITA No-3855/2011 in assessee's own case for the assessment year 2007-08. The operating part of Hon'ble Tribunal's order is reproduced below:- "At the time of the hearing, the learned AR submitted that the issues are covered by the decision of ITAT, Bench 'B', New Delhi in ITA No-2130/Del/2009 for the assessment year 2004-05, ITA N0- 2131/Del/2009 for the assessment year 2005-06 and ITA No- 2132/Del/2009 for the assessment year 2006-07 where the ITAT has decided the issue in favour of the assessee. The only change in the facts and circumstances are regarding the filing of the application for c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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