9911796707
TMI Blog2023 (11) TMI 977X X X X Extracts X X X X X X X X Extracts X X X X ..... 14.6.2022. 2. There is a delay of 264 days in filing the appeal before the Tribunal. The assessee has filed application for condonation of delay along with affidavit. The reasons for the delay are stated to be that the order of the CIT(Appeals) was served on the assessee by email on 14.06.2022. However, the employee, Ms. Ramya, who was handling the statutory compliances was on intermittent leave due to health issues and further on long leave for medical treatment at NIMHANS currently. On enquiry by the counsel who represented before the CIT(Appeals), the Finance Manager came to know about the dismissal of the appeal by the CIT(A), NFAC during October, 2022 close to the Annual General Meeting and there was a change in the officer bearers an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not be disallowed. The assessee relied on the decision of Govindu Naicker Estate v. ADIT (2004) 248 ITR 368 (Mad) where it was held that the expenditure incurred in advance for charitable purpose in an earlier year out of income of subsequent year should be taken to account in reckoning the amount applied for subsequent year, as otherwise there may be shortfall in application of income resulting in liability which cannot be correct. The AO was of the view that this decision is in respect of interest paid in advance and hence not applicable to present case of set off of earlier years excess application. The AO observed that the application of income for charitable purpose must be during the relevant previous year and 85% of the income of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charitable purposes. Such excess cannot for part of the total income/loss and hence the same cannot be allowed. He relied on the Hon'ble Delhi High Court decision in the case of CIT v. Indian National Theatre Trust (2008) 305 ITR 459 and observed that the exemption u/s. 11(1)(a) and 11(2) are independent and assessee can claim exemption under either of these two provisions. The same ratio applies equally when a Trust seeks exemption on the basis of application of income as it is the same income which is sought to be accumulated. When income accumulated in an earlier year cannot qualify for exemption u/s. 11(2), the excess income applied in earlier assessment year will also not qualify for exemption. The CIT(A) also relied on the decisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess of such brought forward expenditure and nature of expenditure was not established. The CIT(Appeals) observed that no details of expenditure were filed by the assessee to conclusively establish that the expenditure incurred in the earlier years were only for charitable purposes and therefore dismissed the appeal of the assessee. Aggrieved, the assessee is in appeal before the Tribunal in the second round. 9. The ld. AR submitted that certain details in support of the assessee's claim could not be furnished/uploaded on the portal in the proceedings before the CIT(Appeals) which were voluminous and the assessee had sought leave to furnish copies of annual reports of AYs 1999-2000 to 2001-02 showing the deficits. However, the CIT(Appeals) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs the assessee was unable to demonstrate before the CIT (A) for the AY 1999-2000 to 2001-02 that the assessee had carried out charitable activities as per direction of the Hon'ble Tribunal. 12. We have heard both the parties and perused the material on record. The assessee has claimed set off of excess application of income for the AYs 1999-2000 to 2001-02 of Rs. 61,04,954 in the impugned assessment year. The assessee is granted registration u/s. 12A of the Act w.e.f. 01.02.1999 and since then, as per submission of the ld. AR, the assessee has not amended its objects clause and continuously availing the benefit of exemption u/s. 11 of the Act. The AO has allowed exemption u/s. 11 of the Act in the present year also. The CIT(Appeals) has d ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
