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TMI Blog2020 (7) TMI 594X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee is ₹ 14,82,12,178/- the assessee has spent more than 85% of the income for the year under consideration. As per section (11)(1)(a), the income accumulated by the assessee is less than 15%, therefore the entire income of the assessee is exempt u/sec. 11(1). We have examined the entire facts and circumstances of the case and find that assessee is running the trust in accordance with the objects. The activities carried by the assessee in running the trust are charitable in nature, the expenditure incurred by the assessee is also a genuine expenditure. CIT(A) after examining the details in respect of expenditure incurred by the assessee gave a finding that the assessee has applied his income more than 85%, therefore as per section 11(1), the entire income of the assessee is exempt. We find no reason to interfere with the order passed by the ld. CIT(A). - C.O.No. 123/VIZ/2019, I.T.A. No.337/VIZ/2019 (Asst. Year : 2013-14) - - - Dated:- 5-3-2020 - SHRI V. DURGA RAO, HON BLE JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, HON BLE ACCOUNTANT MEMBER Assessee by: Shri G.V.N. Hari, Advocate. Department By: Shri S.R.S. Narayan, CIT DR ORDER PER V. DU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the principle purpose of caring for poor and deserving children. Through the Trust a Family or Individual sponsors a child and in a spirit of caring and sharing offers support for the education and welfare of the child This support continLies 1i the child completes his/her education. 7.2 Street Children Rehabilitation Programme: Vijayawada is one of the biggest Railway Junctions in South India and many runaway kids land up here. We are involved in the rescue of street kids and have set up Homes for their rehabilitation. We have 2 Children's villages and 4 other Homes for street and destitute children. At present 930 (461 boys and 469 girls) children are staying in our Homes. The majority of these children are studying, in English medium schools set up on our campuses. Others are in schools, colleges and in technical and professional institutions in and around Vijayawada. 7.3 Daddy's Home: In 1999 the Trust acquired 27 acres of land at Buddavaram, on the outskirts of Vijayawada, and we built - Daddy's Home - a Rescue and Rehabilitation Home for street children and orphans. There are 12 Homes for the children, a Dispensary, Cafeteria, Laundry, School, an A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We have also provided a TV and indoor games for the entertainment of the boys. Mosquito nets and repellents are- provided to the Home. We also supply milk, fruits and chicken to supplement the boys' diet. On an average there were 30 boys lathe Home during the year. The Director, Juvenile Welfare, Correctional Services Welfare of Street Children issued Orders on 25. 09.2003 nominating Care Share on the Home Committee of the Observation Home for Boys, Vijayawada. On 22.11.2008 the Trust was nominated as a member of the Task Force Committee for the formulation of the Citizen's Charter and to monitor the implementation of the Charter. Care Share is also involved in the support of the Observation Home for Boys at Eluru which has 150 inmates. 7.9 Physically Handicapped Children Welfare Programme: In 1996 we started Asha Kiran - a workshop for the fabrication of Callipers, Crutches and Prosthesis. These are given free of cost to poor handicapped children. About 4,329 patients were screened till date and 5,978 children adults have been assisted with callipers, crutches, artificial limbs, tricycles, wheel chairs, CP chairs, corrective surgeries and repairs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ldren are also given milk and a mid-day meal. Recreation facilities for the children are also provided in these centres. After learning the rudiments of reading and writing the children are placed in regular schools in the area. There are 1,317 children in these Literacy centres and schools with 30 staff members. 7.13 Community Development Programme: In addition to the Literacy programme for the children in the slums we have Awareness programmes for the adults. There are Self-help groups of women with the aim of improving their living conditions through savings and skill development programmes. Several of the women have been given Pushcarts for starting small businesses. Most of the men are illiterate and have no skills. They depend on pulling Rickshaws for their livelihood. Our Trust has given out 454 Cycle Rickshaws, 142 pushcarts, 23 petty shops and 400 sewing machines free of cost for these slum dwellers and villagers. We are also conducting regular health camps at the Slums and distributing medicines free of cost. 7.14 Sishu Gruha - Babies' Home: On the request of the Government the Trust started a Home for abandoned babies in June 2005. Since ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that the total construction cost claimed by the assessee from last several years is ₹ 20 to 25 crores, however, the total cost of buildings appearing on the land cannot exceed ₹ 10 to 12 crores. Accordingly, the Assessing Officer has denied the claim made by the assessee to the extent of ₹ 3,63,96,696/-. Before the ld.CIT(A) the assessee has filed all the details in respect of cost of construction in the form of paper book, the same is filed before us at page Nos. 58 to 97. The ld. CIT(A) after examining all the details deleted the addition made by the Assessing Officer by observing that the assessee has actually carried the construction activity which is in pursuance to the objects of the assessee trust, therefore directed the Assessing Officer to delete the addition. 8. We have perused the assessment order and also the order of the ld.CIT(A) and also the paper book find that the finding given by the ld. CIT(A) is based on the material available on record. The assessee has carried out construction activity and incurred expenditure through cheque payments. We have gone through the entire material, prima-facie find that almost all the payments are made by ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cumstances of the case the ld. CIT(A) has not violated rule 46A of the I.T. Rules and adjudicated the issue after examining all the details. Under these facts and circumstances of the case, we are of the opinion that no remand report is required, for the reason that the expenditure incurred by the assessee is very clear from the records. Therefore, the ld. CIT(A) rightly directed the Assessing Officer to delete the addition. In view of the above, the ld. CIT(A) not violated rule 46A of the I.T. Rules. Thus, ground Nos. 2 3 raised by the department are dismissed. 9. Ground No.4 also relates to addition made by the Assessing Officer and deleted by the ld. CIT(A) in respect of ₹ 3,63,96,696/-. We have discussed elaborately this issue in the above paragraphs, therefore no separate adjudication is required. The addition made by the Assessing Officer is deleted by the ld.CIT(A) by considering the relevant material available on record, no interference is warranted, therefore same is dismissed. 10. Ground No.5 relates incurring expenditure to the extent of 85%. The total income of the assessee for the impugned assessment year is ₹ 16,66,37,767/-. The assessee is require ..... X X X X Extracts X X X X X X X X Extracts X X X X
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