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2014 (3) TMI 174 - AT - Income TaxDeletion of addition made on surplus derived - Exemption u/s 11 and 12 of the Act Held that:- The amendment to section 2(15) of the Act was applicable from AY 2009-10 and not to the year under consideration, therefore the AO was legally and factually incorrect to invoke provisions of section 2(15) of the Act - the appellant was granted registration u/s 12A of the Act by the Hon'ble ITAT for AY 2004-05, therefore, surplus derived was exempt u/s 11/12 of the Act - The nature of activities of the assessee are same as were carried out in earlier assessment years and subsequent year as have been considered by the AO in assessment year. The Revenue accepted the claim of assessee for grant of exemption on surplus u/s 11 of the IT Act - even if principle of res judicata does not apply to the Income-tax proceedings, but the Income-tax Authorities shall have to follow the rule of consistency - Relying upon Radhswami Satsang vs. CIT [1991 (11) TMI 2 - SUPREME Court] and Commissioner Of Income-Tax Versus Godavari Corporation Limited [1983 (12) TMI 4 - MADHYA PRADESH High Court] - there is no justification to interfere with the order of the CIT(A) in deleting the addition The AO has not brought any evidence on record to suggest that the assessee was conducting its affairs on commercial lines with motive to earn profit - The AO merely considering the activities of construction of flats and selling held the same to be business in nature thus, the registration u/s. 12AA is effective Decided against Revenue.
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