TMI Blog2015 (6) TMI 556X X X X Extracts X X X X X X X X Extracts X X X X ..... it violated any of the other conditions for exemption, its eligibility for exemption u/s. 10(21) of the I.T. Act is otherwise not in dispute. Ld. CIT(A) has also held that the assessee was registered u/s. 12AA of the I.T. Act w.e.f. 7.4.2006 and its income is exclusively by way of grants/ aids and interest on bank deposits, neither of which accrued in the first week of April, 2006. As regards its income accruing after 7.4.2006, it was also eligible for exemption u/s. 11 of the I.T. Act. Thus, it was eligible for exemption in respect of its income under section 10(21) as well as 11 of the I.T. Act and was not required to furnish the declaration in Form No. 10 in respect of part of the income accumulated by it. Ld. CIT(A) has granted the rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and aggregate expenditure of Revenue and Capital nature was not chargeable to tax being exempt. 5. That the authorities below, on facts and in law, and the grounds taken and the basis adopted went wrong to deny the exemption and to hold the surplus of ₹ 1,15,59,308/- constituted income chargeable to tax. Impugned finding deserve to be quashed being erroneous and untenable on facts and in law and the exemption as claimed deserve to be allowed. 6. The ascertained tax liability including interest u/s 234(A) and 234(B) on the basis of assessed income as per Assessment order deserve to be quashed being void, illegal and without jurisdiction. 2. The brief facts of the case are that the assessee institution is state to be 100% aide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... over this case. Assessee filed its reply which the AO placed on record. Later on the case was assigned to the Addl. CIT, Range-2, Dehradun by the Commissioner of Income Tax, Dehradun u/s 127 of the Income Tax Act, 1961. Accordingly, notice bulls 143(2) was issued by the him on 12.10.09 and 24.12.09 which have been duly served upon the assessee. It was found that during the relevant previous year the assessee has applied ₹ 13,62,38,103/- out of total income of ₹ 14,77,97,411/-. Further the assessee has failed to comply with the provisions of sub-section (2) of section 11 in respect of accumulation if any, for application wholly and exclusively to the objects for which it is established as no Form No. 10 has been furnished by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4, 2004-05 2005-06 such delay was condoned by the Commissioner of Income Tax, Dehradun. However, the assessee's contention that facts and circumstances being the same, the delay deserves to be condoned in pursuance of the order of the superior authority i.e. Commissioner of Income Tax, Dehradun. AO did not accept the contention of the assessee and stated that as the principle of res judicata does not apply to the income tax proceedings and the assessee has failed to get delay in furnishing Form No. 10 condoned by the appropriate authority. He concluded that the assessee has failed to fulfills the conditions of section 10(21)(a) of the Income Tax Act, 1961. Therefore, the exemption within the meaning of section 10(21) is not available ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otherwise not in dispute. Ld. CIT(A) has also held that the assessee was registered u/s. 12AA of the I.T. Act w.e.f. 7.4.2006 and its income is exclusively by way of grants/ aids and interest on bank deposits, neither of which accrued in the first week of April, 2006. As regards its income accruing after 7.4.2006, it was also eligible for exemption u/s. 11 of the I.T. Act. Thus, it was eligible for exemption in respect of its income under section 10(21) as well as 11 of the I.T. Act and was not required to furnish the declaration in Form No. 10 in respect of part of the income accumulated by it. Ld. CIT(A) has granted the relief to the assessee, as requested by it by passing an elaborate impugned order. In our considered opinion, the Ld. CI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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