9911796707
TMI Blog2022 (11) TMI 116X X X X Extracts X X X X X X X X Extracts X X X X ..... ets namely computer, electrical equipments, furniture and fixtures, laboratory equipments, building construction and related objects of the assessee society. Further the Ld. CIT(A) has taken into consideration the fact that the claim of the assessee has been allowed by the AO for A.Y. 2009-10, 2013-14 and 2014-15 wherein the claim of the assessee has been accepted and exemption u/s 11 has been allowed to the assessee. As regards the double deduction on account of depreciation, the AO has been asked to verify the same as per the law applicable for the year under consideration - No infirmity in the finings so recorded by the Ld. CIT(A) who has considered the entirety of facts and circumstances of the case and has allowed the exemption so c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rial available on the record. 3. Further, it is noted that the appeal of the Revenue is barred by 56 days as noted by the Registry. In this regard it was submitted by the ld DR that the order of the Ld. CIT(A) was received on 06.03.2020 in the O/o the Commissioner of Income Tax(E), Chandigarh and the appeal in this case was getting time barred on 04.05.2020 as per section 253(3) of the Income Tax Act, 1961. Subsequently, on 31.03.2020, the Central Government brought out THE TAXATION AND OTHER LAWS (RELAXATION OF CERTAIN PROVISIONS) ORDINANCE, 2020 NO. 2 OF 2020 which provided for extension of various time limits (including filing of appeals) under the Taxation and Benami Acts in view of COVID-19 outbreak. As per the ordinance, the time l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds of the assessee society. Further, depreciation claimed amounting to Rs. 43,91,613/- was also disallowed on account of double deduction and the income was accordingly assessed and determined at Rs. 1,79,19,134/-. 4.1 As per the AO, the assessee has earned huge surplus which has not been applied for charitable purpose and the surplus have been applied towards FDR handling charges, house tax etc. and investment in capital assets have been made in order to acquire non-productive assets which are in no way used for charitable purposes. Further the huge surplus generated by the society has been invested in funds on which huge amount of interest has been earned and secured loan have been taken for making investment in different schools and h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;ble Punjab Haryana High Court, Chandigarh vide its order dated 09.04.2015. The AR has filed the copies of the above mentioned orders passed by the Hon'ble ITAT, Hon'ble Punjab Haryana High Court. The AR also filed copies of assessment orders of various preceding and succeeding years where the assessee was allowed the benefit of Section 11/12A of the Income Tax Act, 1961. The AR further argued that the AO has failed to take into consideration the sum of Rs.2,81,80,941/- spent towards capital assets as is clear from Balance Sheet of the assessee. The AR has submitted that the total receipts during the year were Rs.822.24 Lacs and the total expenditure were Rs.923.85 Lacs (which includes Rs. 642.04 Lacs under Revenue expenditure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isallowance accordingly as per law applicable for the year under consideration. Accordingly, these grounds of appeal are allowed. Before parting further, it is mentioned here that as per the chart filed by the AR during the appellate proceedings, the application of the funds for the Assessment Year 2013-14 was only 70% and the AO is advised to examine this aspect and take necessary action accordingly, if any, as per law. In the result, the appeal is allowed. 6. Against the said findings and the direction of the Ld. CIT(A), the Revenue is in appeal before us. 7. During the course of hearing, the Ld. DR relied on the findings of the AO and submitted that the assessee is earning huge surplus which has not been used i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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