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2018 (6) TMI 685 - AT - Income TaxExemption u/s 11 denied - Applicability of amended provisions of section 2(15) - whether activities of the assessee in land development and selling the same constituted `Business’? - Held that:- Following the judgement in case of Hon'ble Jurisdictional High Court in CIT vs. Yamuna Expressway Industrial Development Authority [2017 (4) TMI 1154 - ALLAHABAD HIGH COURT] the issue is decided in favor of assessee as held When CIT (E) was required to consider application for registration, in our view, it should have concentrated only to the requirement of Section 12A and 12AA, as the case may be, and not other provisions like Section 10(20) or 10(20A) etc. The factum that ''IDAs' would be covered or not, under Section 10(20), would make no difference for the reason, if these authorities satisfy requirement of Section 12A(1), then are entitled for registration after following procedure laid down under Section 12AA - the assessee was not indulging in trade commerce or business and hence amended provisions of section 2(15) were not applicable - decided in favor of assessee. Disallowance of office expenses - Held that:- assessee has claimed double deduction for one sum, it cannot be allowed at the outset, regardless of the fact that application of income, considering such disallowance, will be more than 85% - thus restore the addition made by the AO. Set off and carry forward of deficit of earlier years to the current/next years - Held that:- Following the judgement of Hon'ble Bombay High Court in CIT vs. Institute of Banking Personnel Selection [2003 (7) TMI 52 - BOMBAY HIGH COURT] it is held that Income derived from the trust property has also got to be computed on commercial principles and if commercial principles are applied then adjustment of expenses incurred by the trust for charitable and religious purposes in the earlier years against the income earned by the trust in the subsequent year will have to be regarded as application of income - AO is directed to re-compute the income/loss after allowing necessary set off and carry forward - allowed for statistical purpose. Additions made by AO on account of interest - payment of interest to GDA - Held that:- AO has made disallowance of interest by observing that the same was not backed by any evidence - on the contrary, the learned CIT(A) deleted this addition by observing that no such deduction was claimed by the assessee - thus there is a contradiction in the factual position stated by both the authorities below - hence we set aside the impugned order on this score and remit the matter to the file of Assessing Officer for deciding it afresh - allowed for statistical purposes.
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