Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (8) TMI 76 - AT - Income TaxExemption u/s 11 and u/s 10(23C) (vi) - Held that:- Notwithstanding the breach/es, if any, by the assessee, as alleged by the Revenue, its’ entire income would continue to be exempt u/s.10(23C)(vi) of the Act for the current year. The ld. DR, on being queried thus in the matter during the hearing by the Bench, could not furnish any satisfactory answer. There is, thus, in our view, no merit in bringing the income of the assessee partially to tax by denying/disallowing exemption u/s. 10(23C)(vi) qua specific expenses, viz. penalty, etc. as done by the Revenue. Coming to the Revenue’s appeal, there can equally be no question of ‘allowance’ of capital expenditure in determining the assessee’s income under the Act by considering it as ‘applied’ for charitable purposes to that extent. This is as the assessee’s entire income, being exempt u/s. 10(23C)(vi) (save to the extent of ₹ 4,83,910/- derived as rental income by letting out of hall for marriage purposes), does not fall to form part of the total income as defined u/s. 2(45) of the Act. There is accordingly no question of considering its’ application towards charitable purposes and allowing deduction in its respect on that basis. To this extent we are in agreement with the Revenue’s plea, which is against the allowance of both, the capital expenditure, as well as the depreciation thereon, in computing the assessee’s income under the Act. The assessee’s ‘income’ would thus stand to be arrived at on the basis of principles of commercial accountancy (as is the case for a charitable institution registered u/s. 12A). The issue, we may though clarify, becomes academic in view of the assessee’s entire income (other than the rental income supra) being exempt u/s. 10(23C)(vi). There is under the circumstances no scope for application of the decision in CIT vs. Institute of Ranking Personnel Selection [2003 (7) TMI 52 - BOMBAY High Court ]. The non-exempt income would stand to be brought to tax. We decide accordingly.
|