9911796707
TMI Blog2022 (8) TMI 1071X X X X Extracts X X X X X X X X Extracts X X X X ..... rder passed U/s. 143(3) r.w.s 147 and 254 of the Income Tax Act, 1961 ["the Act"] for the AY 2007-08. 2. Brief facts of the case are that the assessee is an Urban Development Authority constituted under Andhra Pradesh Urban Area (Development) Act having registration U/s. 12AA of the Act w.e.f. 1/4/2003. The assessee filed its return of income for the AY 2007-08 on 31/10/2007 admitting total income of Rs. NIL after claiming exemption U/s. 11 of the Act in respect of its excess of income over expenditure of Rs. 1,44,77,293/-. The assessment U/s. 143(3) was completed on 30/03/2009 declaring total income of Rs. NIL after making certain adjustments by the AO. Subsequently, the assessment order was set aside by the CIT-1, Visakhapatnam vide orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Ld. CIT(A), the Revenue is in appeal before us. 3. The Revenue has raised the following grounds of appeal: "(i) The Ld. CIT(A) erred in not considering the facts enumerated in the order of cancellation of registration U/s. 12AA(3) of the Act passed by the Hon'ble Chief Commissioner of Income Tax (OSD), Visakhapatnam vide order dated 4/5/2012 despite the fact that activities undertaken by the assessee authority cannot be said to be charitable in nature in view of the proviso to section 2(15) of the Act. (ii) Whether in the facts and circumstances of the case and in law, the Ld. CIT(A) is correct and justified in not considering the observation of the fact that the Chief Commissioner of Income Tax and deleted the additions made by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her the same can be considered as application of income or not even after considering the exemption u/s 11 to the assessee as per the ITAT directions. (vii) Whether CIT(A) is correct in coming to the conclusion that depreciation of Rs. 78,94,909/- is to be allowed to the assessee basing on the restoration of the 12A by the ITAT inspite of the fact that the same is challenged by the department in the High Court by considering the activities of the assessee are commercial in nature. (viii) The Ld. CIT(A) ought to have considered the fact that expenditure of Rs. 3,47,600/- is disallowed by the AO on the ground that the same is not towards business expenditure of the assessee; hence how the same can be considered as application of income ev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o delete the additions of Rs. 5,88,17,622/- which was passed vide assessment order u/s. 143(3) r.w.s 254 of the Act, dated 30/03/2011 consequent to the cancellation of the registration u/s. 12AA of the Act. We find that since the Hon'ble Tribunal has restored the registration u/s. 12A of the Act, the assessee is entitled to claim exemptionu/s. 11 of the Act and hence the Ld. CIT(A() has rightly directed the AO to delete the additions made by the Ld AO. Accordingly, we therefore find no infirmity in the order of the Ld. CIT(A) on this ground and dismiss the grounds raised by the Revenue. 7. With respect to Grounds raised from (iv) to (ix) of the Grounds of appeal, we find that the Ld. CIT(A) has followed the directions of the Hon'ble Income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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