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2016 (7) TMI 96 - ITAT JAIPURRate of tax where the Benefit of Section 11 denied - violation of Sec. 13 - Held that:- It is undisputed fact that during the year, the assessee has shown surplus income over the expenditure at ₹ 20,51,064/-. There is violation of Sec. 13 that the assessee had made advances to the office bearer, which was coming as opening from 01/4/2008 and also as on 31/3/2009 for ₹ 1,54,880/- . The assessee’s explanation was that it was advances for payment was to be made for the services provided by the third person but as such the assessee has not established any nexus with evidence that these amounts were really provided and kept with the office bearer for the purposes of services rendered by the third person to the assessee society as same has been adjusted in the month of April, 2011. Therefore, it is clear cut default U/s 13 but as various ITATs as well as Hon'ble High Courts held that if there is violation of Section 13 read with Section 11, MMR can be applied to that sum, which was considered U/s 13 as violated during the year, the assessee’s advance ₹ 1,54,880/-. Therefore, by following the decision cited by the assessee particularly decision of Hon'ble Supreme Court in the case of DIT Vs Working Women’s Forum (2015 (9) TMI 1447 - SUPREME COURT) and Jurisdictional ITAT decision in the case of M/s Santokba Durlabh Ji Trust Fund Vs ITO (2014 (11) TMI 444 - ITAT JAIPUR) are squarely applicable. Accordingly, the ld Assessing Officer is directed to tax @ MMR for ₹ 1,54,880/- and allow the benefit of Section 11 for remaining amount as claimed in the return by the society. - Decided in favour of assessee
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