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TMI Blog2023 (9) TMI 1510X X X X Extracts X X X X X X X X Extracts X X X X ..... be allowed benefit of Section 11 and 12 of the Act. This benefit has been conferred by the learned CIT (A). No infirmity in the order of the CIT (A) and therefore, we hold that assessee is eligible for benefit u/s 11 and 12 of the Act as it is a registered trust u/s 12A of the Act. Therefore, we dismiss the appeal filed by AO. Coming to the appeal of the assessee, we find that when the assessee is entitled to the benefit of section 11 and 12 of the Act, application of such income by incurring the expenses for the object of the trust are necessary to be allowed to the assessee. CIT (A) is not correct in holding that same does not arise from the assessment order. The assessment order has completely denied the benefit of Section 11 and 12 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a that the said ground is not arising out of the order passed by the assessing officer though the AO has clearly stated in the order that the expenditure is not allowable. b) The CIT(A) ought to have decided the matter of disallowance of expenses. 2. On the facts and circumstances of the case and in law, the CIT(A) erred in not going through the order of the AO where it has been clearly mentioned as under: At Para 14 of the order: Therefore, interest income of Rs. 1,22,74,579 received by the assessee is brought to tax separately, treating an income within the meaning of Section 2(15) of the IT Act and no expenses are allowed, as no real expenditure is incurred to earn this income. Therefore, the ground is coming out of the assessment order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9;ble High Court vide ITXA No.571/2020 and the same is pending for adjudication before the Hon'ble High Court. 3. Whether, on the facts and in the circumstances of the case and in law, the Ld. CITA) was justified in allowing the benefit of exemption u/s 11 12 of the LT Act, 1961 to the assessee, ignoring the fact that once the assessee is hit by the proviso to section 2(15) of the I.T. Act, its objects are no more charitable objects then such activities cannot be treated as income derived from property held for charitable purposes and therefore such income is also not exempt u/s 11 of the Act? 05. The brief fact of the case is that Assessee is a trust governed by and administered under Bank of India retired employees medical assistance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , assessee is eligible for benefit under Section 11 and 12 of the Act, as ITAT has directed the DIT to grant registration under Section 12AA of the Act. Accordingly, he held that the corpus donation of ₹2 crores and bank interest of ₹1,22,74,579/-, assessee is eligible for exemption under Section 11 of the Act. However, with respect to the deduction of certain expenses, which are application of income for the object of the trust , he held that as there is no whisper in the assessment order about such disallowances, issue does not arise in the appeal, he dismissed these grounds. Therefore, in nutshell, he granted the exemption of the income but did not allow certain expenditure incurred for the purpose of charitable objects. Ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any infirmity in the order of the learned CIT (A) and therefore, we hold that assessee is eligible for benefit under Section 11 and 12 of the Act as it is a registered trust under Section 12A of the Act. Therefore, we dismiss the appeal filed by the learned Assessing Officer. 13. Coming to the appeal of the assessee, we find that when the assessee is entitled to the benefit of section 11 and 12 of the Act, application of such income by incurring the expenses for the object of the trust are necessary to be allowed to the assessee. The learned CIT (A) is not correct in holding that same does not arise from the assessment order. The assessment order has completely denied the benefit of Section 11 and 12 of the Act. Therefore, the application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned CIT (A), the assessee was allowed benefit of Section 11 and 12 of the Act, however, the learned CIT (A) did not direct the learned Assessing Officer to allow the application of income by way of various expenditures, holding that the application of income does not arise from the assessment order. Thus, identical orders of assessment and appeal were passed in this year also as compared to A.Y. 2010-11. Therefore, both the parties are in appeal before us. 18. Both the parties confirmed that facts and circumstances of the case and the issue involved in this appeal are identical to the appeals of both the parties for A.Y. 2010-11. 19. On careful consideration, we find that the issues are identical in this year also as compared to the fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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