9911796707
TMI Blog2015 (9) TMI 1352X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts and in the circumstances of the case the learned commissioner of Income Tax (Appeals) erred in not holding that the income of the appellant being exempt u/s.10(23C)(vi) of the IT Act and therefore the learned ITO was not correct in applying the provisions of Sec. 11 while completing the assessment for the year. 2. That without prejudice to ground No. 1 above though presuming but not admitting that provisions of Sec. 11 of the I.T. Act 1961 are applicable, even then the learned Commissioner of Income Tax (Appeals) erred in not accepting the appellant's entire claim under the provisions of Sec. 11(IA) in respect of reinvestment in capital assets for the purpose of determining the application of appellant's income for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,162/- Rs.15,01,27,920/- Less: Income applied for charitable Purpose as shown in I&E a/c.. Rs.16,90,81,042/- Less: Not treated as application Rs.2,81,64,885/- Rs.14,09,16,157/- Less : Capital expenditure.................................. Rs. 92,11,763/- Rs. 44,30,340/- Rs. 47,81,423/- Total income............................. Rs. 47,81,423/-". Before the Assessing Officer, the assessee had also submitted that it had applied for renewal of exemption under section 10(23C)(vi) for a period of three years from 2007-08 on 21.01.2009, which was still pending before the authority. However, since the approval had not been granted till the date of passing of assessment order, the Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rposes and the net consideration from such disposal having been utilized for acquiring other capital assets held under Trust wholly for charitable purposes, the capital gains arising from such disposal of the original investments were required to be treated as applied to charitable purposes in terms of section 11(1A) of the Act to the extent specified there under. The assessee had submitted copies of the audited accounts of the assessee and a statement showing reinvestment of the proceeds from transfer of capital assets during the previous year relevant to the assessment year 2007-08. The assessee's claim was that it utilized the whole of the net consideration of Rs. 5,90,08,073.08 for acquiring other capital assets held under Trust wholly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot Rs. 1,34,233/-. Be that as it may, the main issue is whether the Assessing Officer's plea of holding the investments till the end of the financial year, which was accepted by the ld. CIT(Appeals), needs to be considered in the light of the provisions of section 11(1A). The provisions of section 11(1A) are reproduced hereunder:- "11(1A) for the purpose of sub-section (1),- (a) Where a capital asset, being property held under trust wholly for charitable or religious purposes, is transferred and the whole or any part of the net consideration is utilised for acquiring another capital asset to be so held, then, the capital gain arising from the transfer shall be deemed to have been applied to charitable or religious purposes to the extent s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itable or religious purposes, is transferred and the whole or any part of the net consideration is utilised for acquiring another capital asset to be so held, then, the capital gain arising from the transfer shall be deemed to have been applied to charitable or religious purposes. There is no condition that capital asset should be held till the end of the financial year. We are not inclined to accept the interpretation placed by the ld. CIT(Appeals) that the term 'so held' implies that the capital asset which was acquired out of the net sale consideration should be held in that form till the end of the financial year. We, accordingly, set aside the order of ld. CIT(Appeals). Resultantly, Grounds No. 2 & 3 stand allowed. 10. In the result, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
