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2015 (9) TMI 1005 - AT - Income TaxEligibility for deduction U/s.11 & 12 denied - assessee company registered U/s.25 of the Companies Act, though a non-profit institution for controlling and motor sports as per CIT(a) - Held that notification No.S.O.1246(E) dated 29.11.2002 wherein the Central Government has specified motor racing including motor cycle racing to be granted the benefit of section 80G of the Act which was not considered by the Ld. CIT (A). On perusing the order of the Ld. CIT (A) we find that these aspects were not being considered while denying the benefit of Sections 11 & 12 of the Act to the assessee. Therefore in the interest of justice we hereby remit back this issue to the file of the Ld. CIT (A) to re-consider the matter Disallowance of set-off of the earlier year's excess application for the succeeding assessment years - Held that:- The claim of the assessee to carry forward the excess application of fund cannot be entertained applying the commercial principles. However if the excess application of funds are from the borrowed fund or from the sundry creditors during the earlier years, the same shall be allowed as application in the year in which such loan or sundry creditors are repaid from the income of the trust. This ground is accordingly disposed off. Tax surplus at the maximum marginal rate by denying the exemption U/s.11 of the Act - Held that:- Since this issue is linked with the denial of exemption U/s. 11 & 12 of the Act which is the first ground raised by the assessee hereinabove and the same is remitted back to the file of the Ld. CIT (A), similarly this ground raised by the assessee is also remitted back to the file of the Ld. CIT (A) to decide the matter afresh. Disallowance of foreign travel expenses invoking the provisions of section 11(1)(c) - Held that:- We do not subscribe to this view of the Ld. CIT (A). If the assessee has incurred foreign travel expenses outside India in order to comply with the objects of the assessee company which if entitled for the benefit of Section-11 & Section-12 of the Act, the same shall be treated as the application of income. - Decided partly in favour of assessee for statistical purposes.
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