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2017 (1) TMI 1056 - AT - Income TaxExemption u/s 11 - denial of claim on non-registration under section 12AA - Held that:- Nothing has been brought on record to suggest that besides non-registration under section 12AA, the assessee has failed to fulfill any other conditions as envisaged u/s 11, 12 and 13 of the Act by virtue of which it shall be denied the exemption under section 11 & 12 of the Act. In fact, on perusal of assessment order, it is noted that the Assessing officer has noted in context of grant of ₹ 2,50,00,000 to Amber Development Authority and of ₹ 3,82,10,322 to Jaipur Metro Rail Corporation Limited that “these expenses would be admissible as application of income if it was to be considered exempted under section 11, 12 and 13 and as the benefit of section 11 is not admissible, the sum paid to these two institutions as grant would not be admissible” and hence added back to assessee’s income. Similar is the position in respect of other disallowances except for an amount of ₹ 1,57,56,523 which has been allowed in the earlier years and disallowance thereof confirmed by the ld CIT(A). It is thus clear that the Revenue has not disputed any of these expenses as application of income (except ₹ 1,57,56,523 which was already allowed in earlier years) for want of fulfilment of any of the conditions specified under section 11, 12 and 13 of the Act. Regarding applicability of section 13(8), we have already held above that in view of proviso to section 2(15) not applicable in the case of the assessee, provisions of section 13(8) would not be applicable. Rejection of books of accounts u/s 145(3) - on account of change in the accounting policy - Held that:- Coordinate Bench has already examined this matter in the year of change of accounting policy ie. AY 2009-10 and has held that “the appellant had changed method of accounting during the year under consideration but the same has been found more accurate and scientific to determine the assessee’s income. Therefore, change of accounting is bonafide and same cannot be rejected on the ground that the assessee had claimed more expenses during the year under consideration.” On the issue of depreciation and double deduction, the matter has again been examined by the Coordinate Bench earlier and decided in favour of the assessee. Nothing has been brought to our notice which controvert the said findings of the Coordinate Bench and we accordingly, do not see any infirmity in ld CIT(A) following the said decision of the Coordinate Bench. - Decided against revenue
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