TMI Blog2015 (9) TMI 592X X X X Extracts X X X X X X X X Extracts X X X X ..... gible for claiming the exemption, that in earlier and subsequent years claim made by the assessee about exemption was accepted by the AO. But, it is not known as to whether any of the orders was passed u/s. l43(3) of the Act. During the appellate proceedings, the FAA has not fully mentioned the submissions made by the assessee and has decided the issue relying upon a judgment that has been overruled long back i.e. in Addl. CIT v. Surat Art Silk Cloth Mfrs. Association [1979 (11) TMI 1 - SUPREME Court]. It is surprising that the FAA had not considered the later judgment which is considered one of the landmark judgments dealing with charitable activities since 1980. He totally ignored the judgment of Hon'ble Delhi High Court delivered in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... U/s. 11 of the Income Tax Act, 1961. That the learned CIT(A) erred in law as well as on facts on relying upon the judgment of Hon'ble Apex Court in the case of Indian Chamber of Commerce v. C.I.T. (101 ITR 796) which was subsequently over-ruled by a larger bench of the Hon'ble Apex Court in the case of Addl. C.I.T. v. Sural Art Silk Cloth Manufacturers' Association (121 ITR 1). That the appellant craves leave to submit any other ground/s on or before the hearing of the appeal.' Brief facts of the case are that the assessee-trust filed its Return of Income on 30.10.2010 showing total income at NIL . The Assessing officer (AO) completed the assessment on 18.01. 2013, u/s. (3) of the Act, determining the income of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le at a very low rate and that also for the purpose of maintenance, that the assessee's claim regarding charitable purpose did not hold good. The AO further found that the assessee had claimed an amount of ₹ 1,11,371.25 being expenses on account of chijjat. He asked the assessee to explain the meaning of chijjat. It was submitted that meaning of chijjat was goods and utensils that were damaged and discarded. The AO found that the assessee had also discarded the same from the details of fixed assets while calculating depreciation. He held that the same had been shown in the fixed assets it could not be deducted as expenditure while computing the business income. He disallowed the claim of the assessee while computing the business i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missions of the assessee the FAA held that the Trust Deed did not mention that utensils would be made available to the poor and/or needy people at a very low rate, the assessee's claim that object and activities of the trust were relief to the poor could not be accepted. He held that the issue was covered against the assessee by order of Supreme Court in the case of Indian Chamber of Commerce v. CIT [1975] 101 ITR 796 held that assessee could not be grated registration for making income by methods which in the hands of the people would have been exigible to tax, that if the assessee ran certain specific types of services and charges remuneration it was an activity which carried on by private agencies would be taxable. Referring to paras ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were not eligible for claiming the exemption, that in earlier and subsequent years claim made by the assessee about exemption was accepted by the AO. But, it is not known as to whether any of the orders was passed u/s. l43(3) of the Act. During the appellate proceedings, the FAA has not fully mentioned the submissions made by the assessee and has decided the issue relying upon a judgment that has been overruled long back i.e. in Addl. CIT v. Surat Art Silk Cloth Mfrs. Association [1978] 121 ITR 1 (SC). It is surprising that the FAA had not considered the later judgment which is considered one of the landmark judgments dealing with charitable activities since 1980. He totally ignored the judgment of Hon'ble Delhi High Court delivered ..... X X X X Extracts X X X X X X X X Extracts X X X X
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