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TMI Blog2013 (1) TMI 989X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the fact that Appellant Authority has been created with the object 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y at ₹ 76,33,428/- out of total receipt of ₹ 3,00,74,881/- and similarly share of interest income was taken by assessee at ₹ 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 als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the State Government by its notification clearly separated the income of authority from total fees since the State Government decided share on the fee of the authority, the income of the authority can 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% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ars and filed the order of Hon ble Tribunal in assessee s own case for AY 2007-08. It was submitted that in earlier years, the matter was restored to the file of the AO and same can be done for this year also. Ld. DR, on the other hand, had no objection. 6. We have heard the rival parties 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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