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2014 (10) TMI 926 - ITAT DELHIDefault by a society registered u/s 13(1)(c)/13(2) - whether that results in denying exemption u/s 11/12 qua the entire receipts of assessee society or to be restricted qua the amount to which default is attracted - Held that:- We find that this issue is no more res integra and is covered by the decisions of various High Courts and the ITAT, holding that disallowance is to be restricted only qua amounts to which violation u/s 13(1)(c)/13(2) is attracted and the exemption in respect of other incomes cannot be forfeited. Difference between the market rate and lending rate of loan to director is to be included in total income. Ground raised by revenue is misconceived and stands dismissed accordingly. Negative cash balance - CIT(A) deleted the addition - Held that:- The actual cash in hand and the cash balance, as reflected in the cash book, has not been altered. The department has not been able to controvert the findings of ld. CIT(A) as in the recasted cash book, filed by the assessee, on which remand report had been called for, from the AO, it is found that unexplained amount of ₹ 3,06,123/- had properly been explained and there is no scope of the addition on this account Addition on development fund - WHETHER consultancy fee to be recognized as corpus donation? - CIT(A) deleted the addition taking note of the fact that two employees voluntarily contributed with the specific direction that the amount shall become part of corpus of the institution - Held that:- Having heard both the parties we do not find any reason to interfere with the finding of ld. CIT(A) because the voluntary donations had been received by the assessee trust with specific direction that the same would form part of corpus. Ground is dismissed. Addition of loan amount as income of respondent - Held that:- Upholding the addition to the extent of 7.5% on account of difference of the interest portion as per market rate, we dismiss the ground taken by the assessee in its cross-objection.
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