9911796707
TMI Blog2019 (11) TMI 999X X X X Extracts X X X X X X X X Extracts X X X X ..... related person for purchase of her property, this inference is drawn on two grounds. One that there is inordinate delay for registration of sale deed of the property and secondly in the interregnum period i.e. the date when the advance was given and sale deed was executed, no interest was charged on the amount so advanced. The fact that no interest was charged on advance made to Smt. Urmila Jain is not disputed by the assessee Trust. A.O. in fact had noted the fact that the assessee Trust is registered u/s 10(23C) of the Act. Despite having recorded this fact, the A.O. did not give any specific finding as to why the assessee would not be entitled for exemption u/s 10(23C) of the Act. We therefore, under these undisputed facts, do not see any reasons to interfere into the finding of Ld. CIT(A). The grounds raised in this appeal are dismissed. - ITA No.468/Ind/2018 - - - Dated:- 19-11-2019 - Shri Kul Bharat, Judicial Member And Shri Manish Borad, Accountant Member For the Appellant : Shri S.S. Mantri, D.R. For the Respondent : Shri C.S. Padlia, A.R. ORDER PER KUL BHARAT, J.M: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... give benefit to the related parties. Hence, the A.O. made addition of interest, which was not charged @ 10% per annum. 3. Aggrieved against this, assessee preferred an appeal before Ld. CIT(A), who after considering the submissions allowed the appeal of the assessee. 4. Now, the revenue is in appeal. Ld. D.R. vehemently argued that Ld. CIT(A) is not justified in allowing the claim of exemption u/s 10(23C)(vi) of the Act without giving opportunity to the A.O. He submitted that the Ld. CIT(A) failed to appreciate the fact that this is a clear case of diversion of funds. He submitted that exemption granted u/s 10(23C)(vi) of the Act is subject to the condition embodied in the letter of approval for granting exemption u/s 10(23C)(vi) of the Act. He submitted that one of the condition is that the assessee trust would apply its income for accumulation of its income or application wholly and exclusively for the objects for which it is established and application of income must be in accordance with the mode specified in sub-section (5) of section 11 of the Act. 5. On the contrary, Ld. Counsel for the assessee reiterated the submissions as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or before the A.O. such exemption was allowed by honorable CIT-A in the appeal so filed by the assessee before him in the light of the decision of Honourable Supreme Court in Goetze (India) Ltd V CIT reported in 284 ITR 323. Thus the Department has the objections of allowing the exemption to the assessee which was neither claimed in the return of income nor claimed the same in the assessment proceedings before the Ld. A.O. as findings given by the Apex Court of India in the cited as above. The assessee wish to bring the following facts of the case before the Honourable Bench, the circumstances which restrain the assessee to claim the exemption as above. (i) IN THE RETURN OF INCOME FILED BY HIM The assessee is duly registered as a Trust u/s 12AA of the Act. As such the provisions of section 11 of the Act applied to the assessee trust. At the time of filing the return of income the assessee has computed the income chargeable to tax before applying the provisions of section 10(23C)(via) of the Act. As per that computation of income there was no income earned by the assessee after applying the provisions of Section 11 of the Act as the trust has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... your honors kind consideration. 3. Officers of the Department must not take advantage of ignorance of an assessee as to his rights. It is one of their duties to assist a taxpayer in every reasonable way, particularly in the matter of claiming and securing reliefs and in this regard the Officers should take the initiative in guiding a taxpayer where proceedings or other particulars before them indicate that some refund or relief is due to him. This attitude would, in the long run, benefit the Department for it would inspire confidence in him that he may be sure of getting a square deal from the Department. Although, therefore, the responsibility for claiming refunds and reliefs rests with assessee on whom it is imposed by law, officers should:- (a) draw their attention to any refunds or reliefs to which they appear to be clearly entitled but which they have omitted to claim for some reason or other; Thus the intention of Law is that to allow all the benefits to the assessee irrespective of the fact whether the assessee claims it or not but it is the duty of every officer to pass on the benefits to the assessee which is avai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ratio of case law as verdict by Honourable Supreme Court of India in the case of Goetze (India) Ltd 284 ITR 323. In this regard it is submitted that the decision of the Apex Court has not laid down as matter of Law that there is a bar for the assessing authority to entertain the claim for deduction otherwise than by filing a revised return. The above views have been taken by Honourable Allahabad High court in the case of Universal subscription Agency (P) Ltd V JCIT reported in 159 Taxman 64. The purpose and intention of Law is to make the correct assessment and to collect correct and legitimate tax from the assessee. If the rightful deduction or relief is not allowed to the assessee, the purpose and intention of the law will be defeated. Reliance is placed on the following case Laws. (i) CIT V Jai Parabolic Springs Ltd 172 Taxman 258 (Delhi) (ii) CIT V Dhampur Sugar Ltd 90 ITR 236 (All) (iii) Bharat Starch Industries Ltd V CIT (ITA No 1611/k/2003 (iv) Thomas Kurian V ACIT 108 TTJ 439 (Cochin) (v) Xerox India Ltd V DCIT New Delhi (ITA No 1580/Del/2010) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itself and has not opted any accumulation of income not only during the year under consideration but even since the inception of the assessee as such there is no force in the ground as raised by the Department contra vending the Proviso 13 of Section 10(23C) of the Act. In the light of the above submissions and the Circular of the Board, it can be safely said that the Department is not permitted to ignore the due claim of the assessee and further is not expected to take advantage of the ignorance of the assessee and if any benefit is available to the assessee in accordance with law, that is expected to be extended to the assessee by the Assessing Officer as directed by honorable CIT-A in his order dated 03.10.2016 as such the same has to be upheld. 02.02.2018 Further in the last but not the least it is submitted that the Honourable Bench has considered above grounds of appeal in assessee s own case for the A.Y. 2011-12 vide ITA No 63/2017 order dated 15.03.2019 in which the Honourable Bench has confirmed the decision of the Honourable CIT-A giving the directions to the Ld. A.O. to allow the exemption u/s 10(23C)(vi) of the Act to the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
