TaxTMI 
TaxTMI 
2012 (7) TMI 126
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....n behalf of the assessee despite service of notice through the department. The assessee is, therefore, proceeded exparte. The brief fact of the case are that the assessee trust, a charitable organization is registered u/s. 12AA vide CIT, Gwalior's order dated 16.04.2001 and is carrying mainly educational activities. It is also providing medical facilities to poor and needy persons. During the year, it has shown total receipts of Rs.16,10,62,929/-, on which excess of income over expenditure has been declared at Rs.2,29,84,653/-. As per audit report in Form 10B enclosed alongwith the return, 85% of its total receipts have been expended towards its objects and accordingly, return declaring Nil income has been filed on 02.09.2008 by claiming ex....
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.... per tenure of course, as per the RGPV (RAJIV GANDHI TECHNICAL UNIVERSITY BHOPAL) notification as student is declared NFT (NOT FIT FOR TECH. EDUCATION) if he is not cleared the degree within 7 years, also those students who do not turn up have been booked by us in the expenditure as un-recovered fee. To verify the same, A.O. has called for student phone No. 9826546645 - Name Pankaj. The A.O. has not asked for further enquiry. Just like depreciation, fees not recovered is also allowed in accordance with normal rules of accountancy. This is held in CIT vs. SHETH MANILAL RANCHHODDAS VISHRAM BHAWAN TRUST (1992) 198 ITR (Guj) 598 and CIT vs. shri Plot Swetamber Murtipujak Jain Mandal (1995) 211 ITR-Guj. 293. Further for calculation of 15% of t....
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....s 12AA and fulfillment of prescribed conditions regarding accumulation, amount expended on objects of the trust, modes of investments, application of income etc. A.O. has accepted the audited books of accounts of the appellant. Also no violation of any of the conditions prescribed for claiming exemption u/s. 11 has been found or mentioned by the A.O. as per the assessment order and as per assessment records in 3 vols. It is a well settled legal position that in case of assessees carrying out charitable activities and claiming exemption u/s 11 specific grounds for denying the benefit of exemption are enumerated in Sec. 13 of the I.T. Act. No such violation of any of the conditions has been found by the A.O. during the entire course of assess....
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....verse material on record nor has made any independent third party enquiry to show that the bad debts have not' been incurred by the appellant during the asstt. year under consideration. Since the appellant has been found to have fulfilled the prescribed conditions for Sec. 11 and registration u/s. 12A is in force, A.O is not found justified in making the addition on account of unrecoverable fee/bad debts. Accordingly, addition of Rs.34,24,948/- is hereby deleted after perusal of records and appellant's submissions." 3. On consideration of the submissions of ld. DR and perusal of the impugned orders, we do not find any justification to interfere with the order of the ld. CIT(A). It is admitted fact that the assessee is engaged in the educat....