Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (4) TMI 914 - AT - Income TaxEligibility of exemption u/s 11 and 12 - income deemed to be chargeable to tax u/s 68 - Held that:- A perusal of the statement recorded from Dr.Mahalingam specifically answers to question no.13, 19 in the statement recorded on 21st August,2006 and the question recorded in the subsequent statement dt. 25th August,2006 demonstrate that the disclosure of Dr.Mahalingam is based on the material Annexure A-2 to A-10. This is the very seized material based on which an addition is once again made in the hands of the assessee. We have asked the assessee to file photo copies of this material, he did so by way of a paper book. We have verified the same and found that the contentions of the Ld.Counsel for the assessee is correct. Once the income is relatable to particular material found during the course of survey and when the same is offered to and assessed to tax in the hands of Dr.Mahalingam in his individual capacity, then the same income cannot be brought to tax once again in the hands of the Trust. This would amount to double taxation of the same income. The Ld.D.R. before us could not demonstrate as to how the seized material could be said as evidence of income being earned by the Trust. Even otherwise as observed by the Ld.CIT(A) as the alleged unexplained receipts is aggregating to ₹ 1,70,23,219/- and the alleged unexplained expenditure is much above the same i.e. aggregating to ₹ 2,25,02,116/-. When the income of the assessee is exempt u/s 11, if this income is taxed as income of the Trust, then, as the same is applied, there would be no sum which can be taxed in the hands of the assessee. We also find that the Hon’ble Delhi High Court in the case of DIT(E) vs. Raunaq Education Foundation (2007 (4) TMI 61 - HIGH COURT, DELHI ), held that exemption u/s 11 of the Act is to be granted when income is brought to tax u/s 68 of the Act. Out of the additions u/s 68 and 69C totalling to ₹ 4,22,48,338/-, no amount can be brought to tax, as the deemed application u/s 11(1) would be ₹ 5,44,75,960/- and the application of income in respect of capital expenditure would be ₹ 12,69,84,028/- totalling to ₹ 18,14,59,988/-. This results in a net deficit of ₹ 3,07,03,982/-. Thus looking at the issue from another angle, we have to uphold the order of the First Appellate Authority and dismiss this appeal of the Revenue. - Decided in favour of assessee.
|