9911796707
TMI Blog2025 (1) TMI 441X X X X Extracts X X X X X X X X Extracts X X X X ..... ference to the earlier A.Ys.2005-06 2006-07. Since, there is no change in the activities of the trust and the assessee is continued to enjoy the exemption u/s. 11 of the Act for the earlier A.Ys. 2005- 06 2006-07, we do not find any fault in the decision of allowing exemption u/s. 11 of the act to the assessee by the ld.CIT(A) for the impugned A.Y. 2007-08 and hence we dismiss the grounds of the appeal raised by the revenue. - Shri Manu Kumar Giri, Hon ble Judicial Member And Shri S. R. Raghunatha, Hon ble Accountant Member For the Appellant : Shri. Nilay Baran Som, CIT For the Respondent : Shri. G. Baskar, Advocate ORDER PER S. R. RAGHUNATHA, ACCOUNTANT MEMBER: This appeal by the revenue is filed against the order of the Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2007-08, vide order dated 21.12.2023. 2. At the outset, we find that there is a delay of 7 days in appeal filed by the revenue, for which petition for condonation of delay along with reasons for delay has been filed. After considering the petition filed by the revenue and also hearing both the parties, we find that there is a reasonable cause for the assessee in no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10A as envisaged u/s. 12A(b) of the Act was filed only on 11.11.2009. 5. Further, there were some disputes between the trustees and the southern Railway mazdoor union. The cases were filed before the courts with serious allegations on the trustees who had been managing the affairs of the trust alleging mismanagement of funds and other affairs of the trust. As a result the Hon ble High court of Madras in their order dated 29.04.2005 appointed Hon ble justice A.Ramamurthy as Managing Trustee of the Trust. The Managing trustee claims to have taken charge on 09.05.2005. From then onwards, the books of accounts and other activities of the Trust have come under the control and supervision of the Managing Trustee appointed by the court. 6. Based on the above details, the audit report filed along with the notes to accounts, which qualified as follows: As per the High Court Order dt. 29.4.2005, the college is run by a Managing Trustee appointed by the Court. The accounts of the Trust for the period 01.04.2004 to 28.5.2005 are under dispute and hence not completed till date. Therefore the financial for the period 2005-06 (from 29.5.05 to 31.3.06) has been prepared without considering the ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has filed the receipts and payments account. The receipts admitted are for Rs. 8,15,93,035. From the payments claimed the capital expenditure for acquisition of assets and expenditure not allowable under the provisions of the Act are disallowed as follows. The assessment is completed as under: Gross receipts as per Receipts and Payments account Rs.8,15,93,035 Less: Payments claimed Rs.13,60,61,558 Less: 1. Fixed Deposits Rs. 5,55,00,000 2. Fees refund Rs. 24,000 3. Bus fee refund Rs. 6,200 4. Capital a/c expenses Rs. 2,49,27,019 5. Salary advance Rs. 2,76,500 6. Books and steel rack Rs. 77,000 7. Caution deposit refund Rs. 8,89,750 8. Hostel rent refund Rs. 7,000 9. Mess refund Rs. 2,62,144 10. TDS Rs. 23,332 11. Advance for construction Rs. 25,000 12. Closing balance cash Rs. 77,47,962 Rs.4,62,95,651 Total income for taxation Rs.3,52,97,384 OR Rs.3,52,97,380 Tax on the above sum at maximum marginal rate Rs.1,05,89,215 Add: Surcharge Rs. 10,58,922 and cess Rs. 2,32,963 Rs. 12,91,885 Rs.1,18,81,100 Add: Interest u/s. 234A Rs. 10,69,299 Interest u/s. 234B Rs. 39,20,763 Rs. 49,90,062 Total demand payable Rs.1,68,71,162 (Rupees one crore sixty eight lakhs seventy one thousand one hundr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the trust continues to run the college by properly using its funds to the object of the trust under the control of a court appointed administrator. Attention was invited to the Case Sree Sree Ramakrishna Samity Vs DCIT cir.2 Siliguri (2015) 64 taxmann 330 (Kolkata- Trib). It is submitted that the AO failed to consider the independent application of income for each year and earlier year application or income have no impact on the current year application. Further the AO failed to consider the audit report filed in Form No.10B and went wrong to state it as form 10A and gave his finding on it. 9.2 It is further submitted that the trust has filed the return for AY 2007-08 with audit report in form NO.10B of the Act and the claim of exemption u/s. 11 were allowed for the block periods. The regıstration u/s 12AA was not cancelled at any point of the year. Hence it is humbly requested to kindly allow the exemption claimed u/s 11 of the act for AY 07-08 and allow the appeal and render justice. 10. On perusal of the submissions made by the assessee before the ld.CIT(A), the appeal of the assessee was allowed by passing an order dated 21.12.2023 holding as under: 6.4 The reply of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee stated that the ld.CIT(A) in his order, very clearly stated that the books of accounts and audit for the blank period of A.Y.2005-06 2006-07 has been completed by the assessee, which has been accepted by the AO by passing an order after the file was remanded from the ITAT for both the years and the same has not been disputed by the revenue. Further, the AO has not denied the exemption u/s. 11 of the Act for the earlier A.Ys. 2005-06 2006-07. The ld.AR submitted that as far as the hostel and mess receipt is concerned, the revenue has failed to note that the AO has wrongly concluded the rent of Rs. 28,14,710/- of hostel building with the mess receipts and also failed to consider the ledger account copies for the same submitted by the assessee. When these details for sent to AO for his remand report, no adverse report has been sent by the AO to the Ld.CIT(A) and hence there is no fault in the order of the Ld.CIT(A) in granting the exemption to the assessee. In light of the above submissions, the ld.AR prayed for dismissing the appeal of the revenue. 13. We have heard the rival contentions, materials available on record and gone through the orders of the lower authorities ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
