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TMI Blog2021 (12) TMI 1171X X X X Extracts X X X X X X X X Extracts X X X X ..... surplus u/s. 11(2). The question of assessee applying ₹ 4,50,172/- before the beginning of F.Y. i.e. before 01.04.2016, when there is no deficit in preceding year has not been answered by the Ld. CIT(E)/DR. So the apprehension of Ld. CIT(E) that assessee has thus claimed double deduction is erroneous and on wrong assumption of fact - we do not find any omission on the part of AO while framing the assessment order on this issue - AO rightly did not draw any adverse inference on the issue which was pointed out as a fault by the Ld. CIT(E). Therefore, we find that the Ld. CIT(E) has erroneously usurped the revisional jurisdiction u/s. 263 of the Act and resultantly the same is quashed. Appeal of the assessee is allowed. - I.T.A. No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... furnished by the assessee revealed that the assessee had claimed application of ₹ 2,76,18,535/- during the year. Out of which ₹ 4,50,172/- was spent on acquisition of fixed asset, out of the past accumulation u/s. 11(2). As per the provision of the act, said amount has already been treated as deemed application in the year of its receipt, when the assessee had opted for its accumulation u/s. 11(2). Subsequent claim of the said amount as application in the F.Y. 2016-17 resulted in double exemption on the same amount. As such application of ₹ 4,50,172/- for the A.Y. 2017-18 was not admissible to the assessee. However, the Assessing Officer overlooked the issue in assessment. 4. Pursuant to the aforesaid Show Cause Notic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een claimed in the past years amounting to double exemption on the same amount. Copies of Computation of income and I E account and Balance Sheet for the past 5 years are enclosed herewith for your ready reference. Your honour may refer to the same and would find our submissions in order. The above fact of incorrect Schedule-I can also be proved from the analysis of the Balance Sheet and the audit report for the relevant year. There is nowhere mentioned in the balance sheet or in the audit report (copy enclosed) by the auditor that the acquisition of fixed assets of ₹ 4,50,172/- were made from the funds accumulated in earlier years. 5. However, the Ld. CIT(E) did not agree with the aforesaid reply of the assessee and ordered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -. {(Schedule-I is the details of amount accumulated/set apart within the meaning of Section 11(2)}. 8. The Ld. AR drew our attention to page 31 (PB) which is Schedule EC which is [Amount applied to charitable or religious purposes in India during the previous year-Capital Account (excluding application from borrowed funds and amount exempt u/s. 11(1A)] and took us to column 2 which reads {(Acquisition of capital asset (not claimed earlier as application of income and for which exemption u/s. 11(1A) has not been claimed)} wherein the amount applied to charity on Capital Account is ₹ 4,50,172/- and Total is ₹ 4,50,172/-. 9. Thereafter, the Ld. AR drew our attention to page 45 (PB) which is the computation of income for the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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