9911796707
TMI Blog2021 (9) TMI 1072X X X X Extracts X X X X X X X X Extracts X X X X ..... t earlier. The interest earned on the said fixed deposit shall constitute income in the hands of the assessee. Accordingly, maturity proceeds of fixed deposit cannot constitute income in the hands of assessee under any count. Hence the Ld CIT(A) was not justified in confirming assessment of the maturity proceeds of fixed deposit as income of the assessee. Accordingly, we set aside the order passed by Ld CIT(A) on this issue and direct the AO to delete the addition relating to maturity proceeds of fixed deposit. Certain fixed assets as application of income - AO allowed an aggregate amount of investment in fixed assets as application of income - We do not find any infirmity in the decision rendered by Ld CIT(A) on this issue. The assessee has claimed the expenditure of 7,29,227/- referred above in the Income and Expenditure account. Hence it cannot again be allowed as application of income. With regard to remaining three items, the assessee has not furnished any detail before us also and further the assessee has not proved that they are in the nature of capital expenditure resulting in acquisition of any asset. Accordingly we confirm the order passed by Ld CIT(A) on this issue. Reje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order. Accordingly, the AO passed the impugned assessment order, wherein he determined the total income of the assessee at ₹ 76,88,340/-. The Ld CIT(A) gave partial relief and hence the assessee has filed this appeal in respect of above said three issues. 3. The first issue relates to assessment of maturity amount of fixed deposit as income of the assessee. The assessee has submitted "Receipts and Payments Account" before the AO, wherein the assessee has shown receipt of maturity proceeds of Fixed deposit kept with a bank amounting to ₹ 50.00 lakhs. The AO observed that the provisions of sec.11 use the expression "income" and not "total income". The expression "total income" has been defined u/s 2(45) of the Act as "the total amount of income as computed in the manner laid down in this Act". Accordingly he took the view that it would be incorrect to assign the meaning of the word "total income" to the word "income". Accordingly, the AO took the view that the "Gross receipts excluding corpus donation" shall constitute income of trust or institution. Accordingly, he assessed the maturity proceeds of Fixed deposits amounting to ₹ 50.00 lakhs as income of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act prescribes exemption from taxation of income of the charitable trust to the extent provided in that section, meaning thereby, all income of charitable trust is taxable except to the extent provided in sec.11. In view of the above, the concept of "income" has to be understood in terms of sec.2(24) and other provisions of the Act. Hence, the view expressed by the AO that the "Gross receipts excluding corpus donation" shall constitute the income of trust or institution is contrary to the provisions of Income tax Act. The "total income" has to be computed in the hands of a charitable trust in accordance with the provisions of sec.11 to 13 of the Act and the same also satisfies the definition of "total income" given u/s 2(45) of the Act. 7. We have noticed that the assessing officer has assessed maturity proceeds of Fixed deposit as income of the assessee. There should not be any dispute that the maturity proceed of a fixed deposit is "capital receipt" in the hands of the recipient. A capital receipt cannot be subjected to tax except under the authority of law. In any case, what was received by the assessee on maturity of fixed deposit is the maturity proceeds of the amount deposi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Ld A.R submitted that the assessee did not furnish Form No.10 for accumulation of income before the assessing officer within the due date prescribed for filing return of income u/s 139(1) of the Act. However, before the conclusion of assessment proceedings, the assessee filed the Form No.10 dated 08-01-2007 before Ld CIT along with the petition requesting Ld CIT to condone the delay in filing Form No.10. However, the Ld CIT, vide his order dated 14.03.2007 passed u/s 119(2)(b) of the Act, refused to condone the delay, inter alia, for the reason that the assessee did not file application in Form No.10 before the AO. The AO also refused to allow accumulation of income u/s 11(2) for the reasons that the Ld CIT has refused to condone the delay and the assessee has not filed Form No.10 before the AO. The Ld CIT(A) also confirmed the order passed by AO on this issue. 11. The Ld A.R submitted that the present assessment order has been passed by the AO in second round of proceedings, since all the issues were set aside by ITAT to his file. A comparison of original assessment order and the present assessment order would show that the AO has copied verbatim the original assessment order. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate (ITA No. 1039/Bang/2017 dated 23.08.2021:- "11. We heard Ld D.R on this issue and perused the record. We notice that the Hon'ble Supreme Court has observed as under in the case of Nagpur Hotel Owners Association (supra):- "It is abundantly clear from the wordings of sub-section (2) of Section 11 that it is mandatory for the person claiming the benefit of Section 11 to intimate to the assessing authority the particulars required, under Rule 17 in Form No.10 of the Act. If during the assessment proceedings the Assessing Officer does not have the necessary information, question of excluding such income from assessment does not arise at all. As a matter of fact, this benefit of excluding this particular part of the income from the net of taxation arises from Section 11 and is subjected to the conditions specified therein. Therefore, it is necessary that the assessing authority must have this information at the time he completes the assessment. In the absence of any such information, it will not be possible for the assessing authority to give the assessee the benefit of such exclusion and once the assessment is so completed, in our opinion, it would be futile to find fault with ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
