TMI Blog2011 (9) TMI 1081X X X X Extracts X X X X X X X X Extracts X X X X ..... of the DIT (Exemption) that department proposed to challenge the order of the Hon'ble ITAT before the Hon'ble Gujarat High Court. This action of the lower authorities choosing not to follow the order of the superior authority is judicial impropriety and their orders deserve to be quashed. 2. Learned CIT (A) erred in law and on facts in confirming the action of AO denying deduction claimed by the appellant u/s 11 of the Act. Ld. CIT (A) has further erred in confirming the assessment made by AO in the status of AOP instead of charitable institution in light of the registration granted u/s 12AA of the Act by DIT (Exemption) to the appellant effective from 01/02/2004. This action of Id. CIT (A) in gross violation of provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tutory deduction claimed by the appellant u/s 1 l(l)(a) of the Act on the ground that the order of the Hon'ble ITAT confirming grant of registration u7s 12AA of the Act is challenged by the Department before the Hon'ble Gujarat High Court. Both the lower authorities erred in not accepting the binding decision of the higher authority. 7. Learned CIT (A) has erred in law and on facts in confirming disallowance of ₹ 15, 00, 00, 0007- made by AO denying the claim made by the appellant towards amount accumulated. Both the authorities erred in not granting the deduction claimed following the order of the Hon'ble ITAT. Ld. CIT (A) ought to have deleted such disallowance. 8. Learned CIT (A) has erred in law and on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder in assessee s own case for the assessment year 2007-08 in I.T.A.No. 1835/Ahd/2010 dated 05.08.2010. It was pointed out that in that year also, the A.O. and Ld. CIT(A) denied the benefit of Section 11 to 13 to the assessee. It was held by them that the assessee is not eligible for exemption u/s 11 of the Income tax Act, 1961 as in the present year. It is pointed out that in that year, the tribunal has restored the matter back to the file of the A.O. for a fresh decision with a direction to recompute the income of the assessee in the light of the provisions of Section 11, 12 and 13 of the Income tax Act, 1961 and in accordance with law. Our attention was drawn to para 4 of this tribunal decision in this regard. It was his submission that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registration certificate was cancelled later on by the DICT (Exemption) u/s 12AA (3) of the IT Act which order was set aside by the Tribunal in ITA No.754/Ahd/2010 vide order dated 21-05-2010. Therefore, considering the above discussion, it is clear that registration u/s 12AA of the IT Act is effective and is in force in favour of the assessee for assessment year under appeal. Therefore, the AO shall have to compute the income of the assessee in accordance with the provisions of section 11, 12 and 13 of the IT Act as is provided u/s 12A of the IT Act. Therefore, the matter requires re-consideration at the level of the AC). We accordingly, set aside the orders of the authorities below and restore the matter in issue to the file of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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