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TMI Blog2019 (9) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... of the 1961 Act. The assessee also filed Resolution dated 10.02.2014 of the Board of Trustee authorising accumulation of income to the tune of ₹ 6.50 crores for purchase of property for temple, dharmshala etc. Thus, the assessee did substantial compliance of requirements of filing form no. 10 with the AO before the culmination of assessment proceedings. There was an amendment in proviso to Rule 12(2) of the 1962 Rules which provided Form No. 10 to be filed electronically w.e.f. 01.04.2014. This is the first year for compliance of said amended Rule to file Form No. 10 electronically. The assessee however defied proviso to Rule 12(2) of the 1962 Rules as it did not file Form No. 10 electronically before the conclusion of the assessment proceedings by the AO. The assessee however later on 07.11.2017 e-filed Form No. 10 electronically. The said Form No. 10 filed electronically along with Resolution dated 10.02.2014 of the Board of Trustee authorising accumulation of income to the tune of ₹ 6.50 crores for purchase of property for temple, dharmshala etc. were duly filed before learned CIT(A) before the culmination of first appellate proceedings vide appellate order dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered view that this matter is factual and requires verification by the AO and hence in the interest of justice and fairness to both the rival parties, the matter need to be set aside and restored to the file of the AO for fresh adjudication after due verification and enquiry as the AO may deem fit. Needless to say that the AO shall grant proper and adequate opportunity of being heard to the assessee in denovo assessment proceedings . The AO shall admit all relevant evidences and explanations submitted by the assessee in its defence in denovo proceedings. The ground number 3 is allowed for statistical purposes. We order accordingly. - I.T.A. No.2061/Mum/2019 - - - Dated:- 19-8-2019 - SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER For The Assessee : Shri. Bhadresh Doshi For The Revenue : Shri. Abhi Rama Karthikeyn S. ORDER PER RAMIT KOCHAR, Accountant Member: This appeal, filed by assessee, being ITA No. 2061/Mum/2019, is directed against appellate order dated 08/02/2019, passed by learned Commissioner of Income Tax (Appeals)-3, Mumbai (hereinafter calle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issued by AO to the assessee, which were duly served on the assessee. 3.3 The AO observed during the course of assessment proceedings conducted u/s 143(2) read with Section 143(3) of the 1961 Act from the perusal of the statement of total income computed by assessee that the assessee has claimed deduction u/s. 11(2) of the 1961 Act, amounting to ₹ 6,50,00,000/- but the assessee has not filed Form no. 10 electronically alongwith Resolution of Trustee. The AO was of the view that deduction u/s. 11(2) of ₹ 6,50,00,000/- could only be allowed when assessee had filed Form No. 10 electronically for accumulation of income. The AO asked assessee to explain as to why accumulation of income of ₹ 6,50,00,000/- claimed by assessee u/s 11(2) of the 1961 Act should not be disallowed. 3.4 The assessee explained that assessee has claimed deduction u/s. 11(2) of the 1961 Act to the tune of ₹ 6,50,00,000/- and had prepared Form no. 10 in physical form . Thus, it was claimed that it was merely procedural lapse and the assessee should not be denied deduction u/s. 11(2) of the Act to the tune of ₹ 6.50 crores. 3.5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the objects and activities of the assessee s trust. The assessee submitted that it entered into an agreement for purchase of property at D S Babrekar Marg known as Avinash Building for a total consideration of ₹ 16.50 crores for which it entered into an agreement for purchase on 13.06.2014 and final deed of conveyance was executed on 30.10.2014. It was submitted that the assessee set aside a sum of ₹ 6.50 crores for said acquisition for which negotiations were earlier going on during the year under consideration. The assessee duly submitted copies of purchase agreements and final deed of conveyance before learned CIT(A). The assessee submitted that acquisition costs for the said property were paid in two instalments and income-tax was also deducted at source u/s 194IA of the 1961 Act while making payments for acquisition of this property, as details hereunder :- Date Amount (Rs.) 11/6/2014 8,16,75,000 28/10/2014 8,16,75,000 Total ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Form No. 10B ( furnished electronically) , the Auditor has stated that an amount of ₹ 6,50,00,000/- was accumulated or set apart for specified purposes u/s 11(2) of the 1961 Act at S.No. 5 of Form No. 10B. It was submitted that this accumulation of income in Form No. 10 along with copy of Resolution passed by Board of Trustees was physically submitted to the AO on 21.12.2016, copy of which was submitted before learned CIT(A). The copy of audit report in Form No. 10B was submitted before learned CIT(A). It was submitted that deduction u/s 11(2) was denied to the assessee merely on the grounds that the assessee has not submitted notice of accumulation in Form No. 10 electronically. It was submitted that the assessee was denied deduction u/s 11(2) merely on technical grounds and genuineness of the accumulation and its utilisation was never disputed by the AO. It was submitted that the said amount of ₹ 6.50 crores which was accumulated to acquire property for objects of the assessee was deposited in the modes specified in Section 11(5) namely Fixed Deposits with Scheduled Banks. It was claimed that the trustees have not benefitted directly or indirectly by the delay in fili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is amendment is applicable prospectively wef 01.04.2016. It was claimed that this amendment will not be applicable to the impugned ay under consideration as we are concerned with ay: 2014-15 which is prior to ay: 2016-17 from where the aforesaid amendment in Section 11(2) shall be applicable. It was claimed that for impugned ay:2014-15, the aforesaid decision of Hon ble Supreme Court shall be applicable and since the assessee had filed Form No. 10 physically before the AO before the completion of assessment proceedings , the deduction u/s 11(2) be allowed to the assessee. The assessee also claimed that this requirement of furnishing Form No. 10 electronically was introduced in Rule 12 of the 1962 Rules for the first time w.e.f. 01.04.2014 vide notification number 24/2014 dated 01.04.2014. It was claimed that since it was a new requirement, the assessee was not aware of the same and the assessee was not advised properly about that. It was claimed that no corresponding amendment was made in Rule 17 of the 1962 Rules to file Form No. 10 electronically . It was submitted that requirement of filing Form No. 10 electronically was added in Rule 17 of the 1962 Rules only with effect from 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... statutory provisions with regard to submission of Audit Report is as under:- 12A. (1) The provisions of section 11 and section 12 shall not apply in relation to the income of any trust or institution unless the following conditions are fulfilled, namely:- where the total income of the trust or institution as computed under this Act without giving effect to the provisions of section 11 and section 12 exceeds the maximum amount which is not chargeable to income-tax in any previous year, the accounts of the trust or institution for that year have been audited by an accountant as defined in the Explanation below sub-section (2) of section 288 and the person in receipt of the income furnishes along with the return of income for the relevant assessment year the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed . Further, in connection with the requirement to file Audit Report by a trust, Rule 12(1) of I.T. Rule is reproduced for easy reference: - [(2) The return of income required to be furnished in Form SAHAJ (ITR-1) or Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the appellant trust. Therefore, the ground of appeal nos. 3 is dismissed. 6. With regard to the second issue , the assessee explained that it had claimed an exemption u/s. 11(1)(a) amounting to ₹ 91,86,875/- on account of application of its income for religious purpose and the AO has allowed an amount of ₹ 24,79,348/- while computing income, while the balance amount of ₹ 67,07,527/- stood disallowed by the AO without any reasons and justifications. The assessee provided details/breakup of these expenses before Ld. CIT(A) and submitted that there were some earmarked funds for which donations were received which stood credited to these earmarked funds in the Balance Sheet and correspondingly expenditure incurred were not routed through P L account , but the said expenditure were reduced from relevant earmarked funds as appearing in Balance Sheet. It was claimed that these donations were received for specific purposes for the objects of the assssee.The assessee also submitted that it filed rectification application before AO u/s 154 of the 1961 Act but the said rectification application was not properly understood by the AO and no relief wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the trust is duly registered which Charitable Commissioner, Mumbai. It was submitted that assessee is religious trust and has done accumulation of income to the tune of ₹ 6,50,00,000/- u/s. 11(2) during the year under consideration i.e. previous year relevant to ay: 2014-15, for acquiring immovable property for constructing temple. It was submitted that premises was bought in the immediately next year for ₹ 16,50,00,000/- . It was submitted that income-tax was also deducted at source under the provisions of Section 194IA of the 1961 Act. It was submitted that assessee claimed exemption u/s 11(2) but was denied exemption on the grounds that Form no. 10 was not filed electronically before the due date as stipulated for furnishing of return of income u/s 139(1) of the 1961 Act. It was submitted that assessee filed form no. 10 alongwith Resolution of the Trustees in physical form before the AO on 21.12.2016 which was before completion of assessment proceedings on 28.12.2016 by the AO. It was also submitted that said Form no 10 was also electronically filed on 07.11.2017 when the appellate proceedings before learned CIT(A) were in progress and copy thereof was furnished ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also drawn to the order passed by Ld. CIT(A). It was submitted that Rule 12 of the 1962 Rules made it mandatory w.e.f. 01.04.2014 for filing of Form no. 10 electronically but no corresponding amendments were made in Rule 17 which was only amended w.e.f. assessment year 2016-17 w.e.f. 01.04.2016. Our attention was drawn to paper book / page no. 26-27 wherein said amended Rule 17 of the 1962 Rules is placed. Our attention was also drawn to page no. 28/paper book wherein amended Rule 12 of the 1962 Rules is placed. Our attention was also drawn to CBDT circular no. 7 of 2018 dated 20.12.2018(F.No. 197/55/2018-ITA-I) wherein CBDT has relaxed the provisions relating to filing of form no. 10 electronically for AY 2016-17. The said CBDT circular is reproduced hereunder:- Sub: Condonation of delay under section 119(2)(b) of the Income-tax Act, 1961 in filing of Form no. 10 and Form No. 9A for AY 2016-17 Under the provisions of section 11 of the Income-tax Act, 1961 ( hereafter Act') the primary condition for grant of exemption to trust or institution in respect of income derived from property held under such trust is that the income derived from prop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the expiry of the time allowed under the relevant provisions of the Act. 6. The Commissioners will, while entertaining such belated applications in Form No. 9A and Form No.10, satisfy themselves that the assessee was prevented by reasonable cause from filing of applications in Form No. 9A and Form No.10 within the stipulated time. Further, in respect of Form No. 10 the Commissioners shall also satisfy themselves that the amount accumulated or set apart has been invested or deposited in anyone or more of the forms or modes specified in subsection (5) of section 11 of the Act. 7.3 It was further submitted by learned counsel for the assessee that audit report in form no. 10B was dully filed alongwith return of income on 25.03.2015 and it is only Form no. 10 which was later filed physically before the AO during the assessment proceeding on 21.12.2016 . It was submitted that later Form no. 10 was filed electronically with Department on 07.11.2017 and copy was filed with Ld. CIT(A). The assessee has placed reliance on the decision of ITAT, Chandigarh in the case of DCIT (Exemption) v. Model School Society in ITA no. 841/Chd/2018 for AY ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so drawn to the appellate order passed by learned CIT(A) while disposing of this ground. 7.6 The Ld. DR on the other hand submitted that e-filing of form no. 10 is mandatory which ought to have been filed before due date of filing of return of income u/s 139(1) of the 1961 Act and the assessee has not filed Form no. 10 electronically alongwith return of income and it was filed physically on 21.12.2016 during the course of assessment proceedings conducted by the AO. It was submitted by learned DR that assessee e-filed Form no. 10 only on 07.11.2017 when appellate proceedings were going on with learned CIT(A) and the copy of the said Form No. 10 filed electronically by assessee with Revenue, was filed with learned CIT(A). On being asked while Rule 12 of the 1961 Act was amended we.f 01.04.2014 and why Rule 17 was not simultaneously amended to provide for electronic filing of Form No. 10 , it was submitted by the Ld. DR that it was the collective wisdom of the Parliament to have amended only Rule 12 wef 01.04.2014 and no simultaneous amendment was made in Rule 17 of the 1962 Rules. 7.7 As to ground no. 3 raised by assessee, it was submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 015, which was filed with Revenue on 25.03.2015 along with Return of income. The assessee however did not file Form No. 10 along with its income-tax return filed with the Revenue. The said Form No. 10 was eventually filed by assessee for the first time physically/manually before the AO on 21.12.2016 , when the assessment proceedings were underway before the AO which culminated into an assessment order dated 28.12.2016 passed by the AO u/s 143(3) of the 1961 Act. The assessee also undisputedly filed Resolution dated 10.02.2014 passed by Board of Trustees approving accumulation of income to the tune of ₹ 6.50 crores in immovable properties for achieving objects and activities of the trust, physically before the AO on 21.12.2016 along with Form No. 10 . The assessee finally filed Form No. 10 electronically on 07.11.2017 with Revenue. The said Form No. 10 filed electronically on 07.11.2017 was then filed before learned CIT(A) by the assessee when first appellate proceedings were underway before learned CIT(A) which finally culminated into an appellate order dated 08.02.2019. The assessee also undisputedly filed aforesaid Resolution dated 10.02.2014 passed by Board of Trustees app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from property held for charitable or religious purposes . 11 (1)***** [(2) [ Where [eighty-five] per cent of the income referred to in clause (a) or clause (b) of sub-section (1) read with the Explanation to that sub-section is not applied, or is not deemed to have been applied, to charitable or religious purposes in India during the previous year but is accumulated or set apart, either in whole or in part, for application to such purposes in India, such income so accumulated or set apart shall not be included in the total income of the previous year of the person in receipt of the income, provided the following conditions are complied with, namely:-] (a) such person specifies, by notice in writing given to the [Assessing] Officer in the prescribed manner, the purpose for which the income is being accumulated or set apart and the period for which the income is to be accumulated or set apart, which shall in no case exceed ten years; [( b) the money so accumulated or set apart is invested or deposited in the forms or modes specified in sub-section (5)]:] [ Provided that i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion (5); (c) the statement referred to in clause (a) is furnished on or before the due date specified under sub-section (1) of section 139 for furnishing the return of income for the previous year: Provided that in computing the period of five years referred to in clause (a), the period during which the income could not be applied for the purpose for which it is so accumulated or set apart, due to an order or injunction of any court, shall be excluded.] [Explanation.-Any amount credited or paid, out of income referred to in clause (a) or clause (b) of sub-section (1), read with the Explanation to that sub-section, which is not applied, but is accumulated or set apart, to any trust or institution registered under section 12AA or to any fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub- clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10, shall not be treated as application of income for charitable or religious purposes, either during the period of accumulation or thereafter.] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 016 and accordingly apply in relation to the assessment year 2016-17 and subsequent years. 8.4 Memorandum to Finance Bill, 2015 with respect to the aforesaid amendment carried in provisions of Section 11 provided as under: Rationalisation of provisions of section 11 relating to accumulation of Income by charitable trusts and institutions Under the provisions of section 11 of the Act, the primary condition for grant of exemption to trust or institution in respect of income derived from property held under such trust is that the income derived from property held under trust should be applied for the charitable purposes in India. Where such income cannot be applied during the previous year, it has to be accumulated and applied for such purposes in accordance with various conditions provided in the section. While 15% of the income can be accumulated indefinitely by the trust or institution, 85% of income can only be accumulated for a period not exceeding 5 years subject to the conditions that such person submits the prescribed Form 10 to the assessing Officer in this regard and the money so accumulated or set apart is invest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come of the previous year of a person in receipt thereof, if (i) the statement referred to in clause (a) of the said sub-section in respect of such income, is not furnished on or before the due date specified under sub-section (1) of section 139 for furnishing the return of income for the previous year; or (ii) the return of income for the previous year is not furnished by such person on or before the due date specified under sub-section (1) of section 139 for furnishing the return of income for the said previous year. This amendment will take effect from 1st April, 2016 and accordingly apply in relation to the assessment year 2016-17 and subsequent years. 8.7 Thus, this Sub-section 9 to Section 13 made it mandatory to file return of income within time stipulated u/s 139(1) and also furnishing of statement in Form No. 10 making declaration of accumulation u/s 11(2) before the due date as prescribed u/s 139(1) of the 1961 Act, w.e.f. ay: 2016-17, for claiming deduction u/s 11(2). Thus, the provisions of the 1961 Act were itself amended w.e.f. ay: 2016-17 onwards making it mandatory for filing of return of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder sub-section (1) of section 139, for furnishing the return of income. (3) The option in Form No. 9A referred to in sub-rule (1) and the statement in Form No.10 referred to in sub-rule (2) shall be furnished electronically either under digital signature or electronic verification code. (4) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall- ( i) specify the procedure for filing of Forms referred to in sub-rule (3); (ii) specify the data structure, standards and manner of generation of electronic verification code, referred to in sub-rule(3), for purpose of verification of the person furnishing the said Forms; and (iii) be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to Forms so furnished. ] 8.10 Thus, as can be seen above, amended Rule 17 of the 1962 Rules now provides that Form No. 10 shall be filed electronically and this amendment is brought in by Income-tax (First Amendment) Rules, 2015 w.e.f. 01.04.2016. However, Rule 17 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the prescribed manner and setting forth such other particulars as may be prescribed and all the provisions of this Act shall, so far as may be, apply as if it were a return required to be furnished under sub-section (1).]] 8.12 The said Section 139(4A), inter-alia, provides that all provisions of the 1961 Act shall , so far as may be, apply as if it were a return of income required to be furnished u/s 139(1) of the 1961 Act. The provisions of Section 139(4) of the 1961 Act provides that in case return of income could not be filed within due date for filing of return of income as stipulated u/s 139(1), the return of income can be filed before the end of the assessment year, which reads as under: 139 (4) Any person who has not furnished a return within the time allowed to him under sub-section (1), may furnish the return for any previous year at any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.] 8.13 The assessee in the instant case has filed its return of income on 25.03.2015 which is within time prescribed u/s 139(4) and as we have seen tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ong with return of income filed by the trust. The assessee did filed audit report in form no. 10B electronically on 25.03.2015 along with its return of income filed with Revenue in ITR-7. There was an amendment in Section 12A of the 1961 Act wherein clause (ba) to sub-section1 to Section 12A was inserted by Finance Act, 2017 w.e.f. 01.04.2018, which reads as under: [(ba) the person in receipt of the income has furnished the return of income for the previous year in accordance with the provisions of sub-section (4A) of section 139, within the time allowed under that section.] 8.16 We are presently concerned with ay: 2014-15 in the instant appeal. Thus, as we have seen above the amendments in the 1961 Act were all brought post ay:2014-15. For us, now it is relevant to see that Rule 17 of the 1962 Rules provided for furnishing of Form No. 10 within time allowed u/s 139(1) of the 1961 Act to avail deduction u/s 11(2) of the 1961 Act and at the same time proviso to Rule 12(2) of the 1962 Rules provided for e-filing of Form No. 10 electronically. These two conditions clearly were not met by the assessee. Thus, for period under consideration befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cess. Had the legislative intention been otherwise, it would have been clearly expressed. It is, therefore, clear that to bring in the time element in the matter of giving notice was not within the delegated authority . Hence, that part of rule 17 which deals with limitation is clearly beyond section 11(2)(a) and is, therefore, illegal. In this context useful reference may be made to the decision of the Supreme Court in the case of STO v. Abraham (K.I.) [1967] 20 STC 367 wherein a similar expression prescribed manner used in section 8(4) of the Central Sales Tax Act is interpreted thus (at page 372): But the phrase 'in the prescribed manner' in section 8(4) does not take in the time element. In other words, the section does not authorise the rule-making authority to prescribe a time-limit within which the declaration is to be filed by the registered dealer. The view that we have taken is supported by the language of section 13(4)(g) of the Act which states that the State Government may make rules for the 'time within which, the manner in which and the authorities to whom any change in the ownership of any business or in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... limitation could have been legally prescribed in the rule in the absence of any specific power to that effect. The Supreme Court decisions referred to above are clear. They specifically speak of the rules and not the form. In principle also no distinction between the form and the rule can be drawn to judge the extent of delegation under section 11(2)(a) where the language does not permit delegation of power to prescribe limitation to give notice. The conclusion is thus inevitable that the Income-tax Rules could not fix a time-limit for submitting the application in Form No. 10 under rule 17 and, therefore, the Tribunal was correct in its conclusion. 8.17 However, when the matter went to Hon ble Supreme Court at the behest of Revenue in the aforesaid case of Nagpur Hotel Owner Association(supra), the Hon ble Supreme Court held that there will be substantial compliance if the said Form No. 10 is filed by the assessee before the AO before completion of assessment proceedings, by holding as under in the case of Nagpur Hotel Owners Association(supra):- 6. It is abundantly clear from the wordings of sub-section (2) of section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nswer the second question on the facts of the case. 8.18 The assessee did filed Form No. 10 in physical mode on 21.12.2016 before the AO during the course of assessment proceedings which culminated into an assessment order dated 28.12.2016 passed by the AO u/s 143(3) of the 1961 Act. The assessee also filed Resolution dated 10.02.2014 of the Board of Trustee authorising accumulation of income to the tune of ₹ 6.50 crores for purchase of property for temple, dharmshala etc. . Thus, the assessee did substantial compliance of requirements of filing form no. 10 with the AO before the culmination of assessment proceedings. However, there was an amendment in proviso to Rule 12(2) of the 1962 Rules which provided Form No. 10 to be filed electronically w.e.f. 01.04.2014. This is the first year for compliance of said amended Rule to file Form No. 10 electronically. The assessee however defied proviso to Rule 12(2) of the 1962 Rules as it did not file Form No. 10 electronically before the conclusion of the assessment proceedings by the AO. The assessee however later on 07.11.2017 e-filed Form No. 10 electronically. The said Form No. 10 filed electronically along ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ject to the conditions, inter alia, that such person submits the prescribed Form No. 10 electronically to the Assessing Officer within the due date specified under section 139(1) of the Act. 3. Further, where the income from the property held under trust and applied to charitable or religious purposes falls short of 85% of the income derived during the previous year for the reason that the income has not been received during that year or any other reason, then on exercise of the option by submitting in Form No.9A electronically by the trust/institution on or before the due date of furnishing the return of income, such income shall be deemed to have been applied for charitable or religious purpose . 4. Representations have been received by the Board/ field authorities stating that the Form No. 9A and Form No.10 could not be filed in the specified time for AY 2016-17, which was the first year of e-filing of these forms. It has been requested that the delay in filing of Form No. 9A and Form NO.10for AY 2016-17 may be condoned under section 119(2) (b) of the Act. 5. Accordingly, in supersession of earlier Cir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... receding para s of this order. The assessee succeeds on ground number 1 raised by it in memo of appeal filed by it with tribunal which stand allowed . We order accordingly. 9. So far as ground number 2 is concerned, the assessee has already stated that the same shall become infructuos and is to be dismissed in case ground number 1 is decided in favour of the assessee. Since , we have adjudicated ground number 1 in favour of the assessee, we dismiss ground number 2 as infructous. We order accordingly. 10 So far as ground number 3 is concerned regarding disallowance of expenses to the tune of ₹ 67,07,527/- which are stated to be incurred against earmarked donations received by the assessee and claimed is made by the assessee that these expenses and donations were not routed through Profit and Loss Account but were directly reflected in Balance Sheet, we are of the considered view that this matter is factual and requires verification by the AO and hence in the interest of justice and fairness to both the rival parties, the matter need to be set aside and restored to the file of the AO for fresh adjudication after due verification and e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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