9911796707
TMI Blog2024 (12) TMI 1477X X X X Extracts X X X X X X X X Extracts X X X X ..... order was emanated from the order of the National Faceless Assessment Centre, Delhi (in short, 'the A.O.') passed under section 143(3) r.w.s. 144Bof the Act date of order27/09/2021. 2. The assessee has taken the following grounds of appeal:- "The following concise grounds of appeal are independent and are without prejudice to each other. (1) Ld. CIT(A) has erred in passing the said order without giving opportunity of being heard. (2) Ld. CIT(A) has erred in upholding the denial of claim of exemption u/s 11 of the Act by invoking proviso to section 2(15) of the Act. (3) Ld. CIT(A) has erred in rejecting the claim of deduction of Rs. 12,52,48,555/- u/s 11(1)(a) of the Act being 15% of income derived from property held under trust by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, rejected the exemption claimed under section 11 of the Act and added the same to the total income of the assessee trust. It is stated that as per the sanction letters, it would be observed that the contribution has been made with the specific direction that it shall be from part of the corpus of the trust. The trust is registered under section 12A of the Act on dated 18/10/2001. But the activity of the trust was treated on contrary of section 2(15) of the Act and accordingly claim u/s 11 is rejected by the ld. AO. In second issue, the Ld.AO rejected on account of the "provision for guarantee claims", amount to Rs. 791,02,44,944/-. The assessee has claimed provision for guarantee claim amount to Rs. 1607,58,00,000/-. After considering t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is squarely covered in favour of the assessee by the order of the co-ordinate bench of ITAT, Mumbai Bench-C in assessee's own case in ITA No.2684/Mum/2022, date of pronouncement 24/11/2023. The relevant paragraph no.20 is reproduced as below:- "20. In view of what has been discussed above and as a sequel to the findings returned in the preceding paras, we are of the considered view that assessee trust having been established by the Government of India with the object and purpose of ameliorating the difficulties of the small scale industries and micro enterprises in availing credit facilities from financial as well as banking institutions without having collateral security and/or third party guarantee which is being provided by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11 of the Act. The trust is fully governed by Government of India for development of the first-generation entrepreneurs in small-scale industries. We respectfully follow the order of the co-ordinate bench of ITAT, Mumbai Bench-C in ITA No.2684/Mum/2022 (supra).We set aside the impugned appeal order in this issue. In our considered view, the ground taken by the assessee is allowed. Accordingly, ground no-2 of the assessee is allowed. 7. In ground no-4 the issue is related to rejection of 'provision of guarantee claims' and the addition was made by the Ld.AO by following the earlier assessment orders. The ld. AO had treated this provision as 'Provision of Expenses" which not allowable as per the statue. It is further stated by the ld. AR t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 347.04 crores. Ground No.3 raised by the assessee is hereby allowed." 8. For demonstrating the fact related to year-wise provision and claim made, the ld. AR submitted a chart which is reproduced as below: - Details of provision for guarantee Amount (Rs.in crores) Particulars Assessment Years 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Opening Balance 1,718.62 1,734.62 1,798.45 2,145.49 2,936.52 3,84738 5,217.12 Add: Provision made during the year 1,020.73 1,126.11 1,314.84 1,607.58 1,912.23 2,073.04 2,321.90 Less:Claims paid during the year 1,004.74 1,062.27 967.80 816.56 1,001.37 703.30 1,227.39 Closing Balance (A) 1,734.62 1,798.45 2,145.49 2,936.52 3,847.38 5,217.12 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
