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2022 (3) TMI 1328 - ITAT MUMBAIExemption u/s 11 - entitled for exemption u/s 10(15)(iv) - HELD THAT:- AR demonstrated the computation of total income for the period 01.04.2014 to 31.03.2015 AR highlighted that as per Audited income and expenditure account, there is a deficit. But while preparing the computation of total income, only Bank interest, interest on income tax refund, scrap sale and rent from hospital are chargeable under income from other sources as the assessee is entitled for exemption u/s 11 - AR also submitted that the tax free interest on bonds cannot be brought under the purview of the taxation and referred demonstrating tax free interest on bond of NHAI, REC, PFC etc. with Actual dates. Whereas the date was changed due to the typing mistake and the computer system package. Hence the tax free interest on bonds to the extent falls in the F.Y 2014-15 relevant to current assessment year and entitled for exemption u/s 10(15)(iv) of the Act. AR submitted that the interest income component was aggregated in the bank account and referred to the bank statements at page 9 to 12 of the paper book. On perusal of these factual aspects discussed above, We find there is a technical error/mistake in computer package which cannot be ruled out. We find the Ld.AR submissions are realistic and duly supported with material evidences in the paper book is appreciated. Accordingly, we direct the Assessing officer to delete the addition of tax free interest on securities-bonds as it pertains to F.Y 2014-15 and the assessee is eligible for exemption u/s 10(15)(iv) of the Act and allow the ground of appeal in favour of the assessee. Addition of donation expenses - AR submitted that the assessee has not claimed deduction in respect of donation while preparing the computation of income and though donation expenses included under head “Miscellaneous income” was debited to the Audited income and expenditure account but for the purpose of exemption under the provisions of Sec.11 of the Act, the assessee has not claimed it as deduction - HELD THAT:- AR demonstrated the computation statement of income - we find that the assessee on applying the principles of mutuality has considered only the bank interest, interest on income tax refund, scrap sales and rent from hospital chargeable under income from other sources and the total income disclosed was ₹ 30,18,600/-. We find Prima facie the assessee has not claimed the deduction of donation while computing the statement of total income. Accordingly, we find the addition sustained by the CIT(A) is not justified and we direct the Assessing officer to delete the addition and allow the ground of appeal in favour of the assessee. Dispute between committee members and the trustees and the best judgment assesseement order is passed under 144 r.w.s 147- no proper accounting principles were applied and the A.O has made an addition after allowing the certain expenditure - HELD THAT:- We considering the overall facts, circumstances and the disputes between the trustees and committee members pending before Hon’ble High Court Of Bombay are of the substantive opinion that, on the principles of natural justice the assessee should be provided one more opportunity of hearing before the lower authorities to substantiate the case with the material evidences. Accordingly, the information/details submitted before the CIT(A) by the assessee are restored to the file of the A.O to consider afresh and decide on merits and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information expeditiously and allow the grounds of appeal of the assessee for statistical purposes.
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