TMI Blog2015 (11) TMI 797X X X X Extracts X X X X X X X X Extracts X X X X ..... o indicate that the trustee has stated that the cars were utilised for the objects of the society, more particularly for transporting the dignitaries of Medical Council of India and others to the premises of the assessee-society, i.e., various colleges. In view of the clear statement of the managing trustee, we do not see any personal usage of the cars of the society. The fact that the Assessing Officer did not quantify any amount of personal use also indicate that the Assessing Officer has raised this issue without any evidence, so as to deny the exemption to the assessee. Purchase of properties in the name of family members of the managing trustee - Held that:-If the Revenue has any grievance on the issue, they should have preferred an appeal on the orders of the Commissioner of Income-tax (Appeals), but the Assessing Officer has no powers to restore the original assessment order under section 143(3) in the guise of modification under section 154, having allowed the exemption consequent to the orders of the Income-tax Appellate Tribunal. In view of this, we do not find any merit in the Revenue's appeals - Decided against assessee. - I. T. A. Nos. 355 and 356 /Hyd/ 2014 (asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the cancellation of registration and accordingly, the assessee is eligible for exemption under section11. Since the main reason for denying the deduction was the cancellation of registration, he directed the Assessing Officer to implement the order of the Income-tax Appellate Tribunal, in his appellate order dated November 10, 2009. Consequent to that, the Assessing Officer gave effect to the order of the Income-tax Appellate Tribunal dated November 21, 2012 holding that since the Income-tax Appellate Tribunal restored the registration under section 12A, the assessee is eligible for exemption under section 11 of the Act. He determined the total income at nil and granted exemption to the assessee under section 11. However, the very same Assessing Officer by a notice under section 154 dated March 27, 2013 proposed that the above orders dated November 21, 2012 were erroneously passed and proposed to modify the orders. The assessee objected to the rectifications proposed. The Assessing Officer however, rejected the assessee's objections and passed orders under section 154 on April 25, 2013 holding that the assessee had violated the provisions of section 13 and therefore not eligibl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted to the exemption and since the Assessing Officer had to give effect to the order of the Income-tax Appellate Tribunal, no separate finding was required to be given in respect of the claim of exemption. In other words, the Commissioner of Income-tax (Appeals) did not consider it fit to adjudicate on the issue of violation of section 13. 5.3. The cancellation of registration was set aside by the Income- tax Appellate Tribunal. While giving effect to the Income-tax Appellate Tribunal's order, the Assessing Officer allowed exemption to the appellant under section 11, thereby accepting that there were no violations of section 13. 5.4 The question whether or not the appellant has violated section 13 is not a mistake apparent from record ; it is a complex issue requir ing detailed examination of facts and circumstances in the light of the legal provisions. Therefore, the Assessing Officer having impliedly held in his modification orders dated November 21, 2012 that the appellant had not violated section 13, it cannot be said that this was a mistake apparent from record open to rectification under section 154. 4. The Revenue is aggrieved and raised various grounds, inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he entire exemption was denied only on the basis of cancellation of registration, which was later restored by the Income-tax Appellate Tribunal. Therefore, there was no mistake apparent from record in the consequential orders passed by the Assessing Officer. Second proposition is on the merits of the so called violations under section 13 of the Act. It was submitted that nowhere in the statements recorded from the managing trustee there was any personal usage of cars, which have been listed for these impugned assessment years. The assessee-society has indeed owned many cars which were used for the objects of the society and no vehicles were used for the personal benefit of the trustees. He referred to various statements recorded during the course of search and the context in which the questions were asked to submit that trustee was replying in the capacity of a managing trustee of the assessee-society which the Revenue authorities interpreted to be that of an individual, therefore, misinterpreted the usage of cars to be of personal nature. With reference to the second allegation that properties were purchased in the name of two former members of the managing trustee, it was submitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the Assessing Officer did not quantify any amount of personal use also indicate that the Assessing Officer has raised this issue without any evidence, so as to deny the exemption to the assessee. 8. The next objection was with reference to purchase of properties in the name of family members of the managing trustee. There is no dispute with reference to the fact that the properties were purchased by the assessee-society, held by it in the books of account and when ultimately sold the capital gains were also assessed in the assessee's hands. In the course of arguments it explained that the properties were held in the name of the individuals as the properties are purchased in the Jubilee Hills Co-operative Society for establishing schools/colleges for the objects of the society. Being a co-operative society, the members' names were included rather than the assessee's name and the fact that the properties were shown in the books of account and funds were utilised from the society were also established before the authorities in earlier years. It is also on record that the so called family members in whose name the properties were registered were also secretary and tru ..... X X X X Extracts X X X X X X X X Extracts X X X X
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