9911796707
TMI Blog2021 (6) TMI 862X X X X Extracts X X X X X X X X Extracts X X X X ..... n the actual receipts, accordingly, it is seen that the AO has not made out a case of violation of provisions of section 11(2). Once it is accepted that the expenditure is allowable against the total receipts of the year for charitable purpose it is established that the assessee has spent more than 85% of the receipts and thus there is no case for making further addition. We set aside the order of the Ld.CIT(A) and delete the addition made by the AO. The appeal of the assessee is allowed. - I.T.A.No.169/Viz/2020 - - - Dated:- 23-6-2021 - Shri N.K.Choudhry, Hon ble Judicial Member And Shri D.S. Sunder Singh, Hon ble Accountant Member For the Assessee : Shri G.V.N.Hari, AR For the Revenue : Shri B.Satyanarayana Raju, DR Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions of sec.11(2) as the appellant spent more than 85% of its income during the year itself and hence there are no accumulations and there is no obligation on the appellant to file Form No.10. 4. The Ld.Commissioner of Income Tax (Appeals) failed to see the submissions of the appellant made before her and the AO in this regard during the proceedings. 5. The Ld.Commissioner of Income Tax (Appeals) ought to have seen that there is no accumulation of income and hence specification of the purposes would not arise. 6. The Ld.Commissioner of Income Tax (Appeals) should have seen that the revised form No.10 and 10B clearly indicated that there were no accumulations. 7. The Ld.Commissioner of Income Tax (Appeals) shou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AT, Visakhapatnam in it s order No.271/V/2009 dated 11.12.2013 directed the AO to examine the issue of Claim u/s 11(2) and accordingly restored the matter back to the file of the AO. For the sake of clarity we, extract the relevant part of the order of Hon ble ITAT in para No.8 which reads as under : 8. Respectfully following principles laid down by the above, we direct the assessing officer to consider the claim of section 11(2) afresh in the light of the judgements on the issue. Therefore, the issue of accumulation of income as per provisions of section 11(2) is restored to the file of the assessing officer with a direction to examine and allow the claim after affording due opportunity of being heard to the assessee. 4. As direc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r charitable purpose was ₹ 2,11,98,654/- as against the expenditure incurred by the assessee amounting to ₹ 3,16,67,572/- and there was no violation of section 11(2) of the Act. The Ld.AR further submitted that the assessee has spent more than 85% of the income during the year itself, and hence, there were no accumulations and no obligation on the assessee to file Form No.10 before the income tax authorities. Accordingly argued that the addition made in the assessment is uncalled for, hence, requested to delete the addition made by the AO and allow the appeal of the assessee. 7. Per contra, the Ld.DR vehemently placed reliance on the orders of lower authorities. 8. We have heard both the parties and perused the material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pted the claim of the assessee. Thus, the assessee has spent more than the actual receipts, accordingly, it is seen that the AO has not made out a case of violation of provisions of section 11(2). Once it is accepted that the expenditure of ₹ 2,33,06,707/- is allowable against the total receipts of the year for charitable purpose of ₹ 2,11,98,654/-, it is established that the assessee has spent more than 85% of the receipts and thus there is no case for making further addition. Hence, we set aside the order of the Ld.CIT(A) and delete the addition made by the AO. The appeal of the assessee is allowed. 9. In the result, appeal of the assessee is allowed. Order pronounced in the open court on 23rd June, 2021. - - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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