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Income Tax Officer (Exemption) Versus St. Joseph’s Capuchin Service Society And Others

2016 (9) TMI 1029 - ITAT DELHI

Applicability of section 11(1A) - investments in new capital asset - investments out of advance of sale receipts being eligible for deduction u/s 11(1A) - Held that:- The provisions of Section 11(1A) are clearly applicable in facts and circumstances as neither the assessee has been held to be noncharitable entity nor the new assets have been held to be purchased for purposes other than charitable nor it has been held that the new assets are not qualified for such deduction. It reveals that the a .....

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ird ITO (1985 (2) TMI 75 - ITAT BOMBAY-E ) and ITAT as regards investments out of advance of sale receipts being eligible for deduction u/s 11(1A). Also find that Ld. CIT(A) has rightly held that when the advance was given for new capital asset and FDs were purchased, the assessee had not received commensurate advance out of sale consideration. It is noted that when assessee paid advance of ₹ 21 Lacs for purchase of new asset, it had received only ₹ 6 lacs towards sale consideration. .....

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tion is only ₹ 20,49,000/- which the Ld. CIT(A) has rightly deleted and addition of ₹ 13,26,400/- was rightly sustained as per provisions of Section 11(1A)(a) - ITA No. 717/Del/2015, C. O. No. 283/Del/2015 - Dated:- 2-8-2016 - Shri H. S. Sidhu, Judicial Member Department by : Sh. A Sreenivasa Rao, Sr. Dr Assessee by : Sh. Kapil Goel, Advocate ORDER Per H. S. Sidhu, J. M. The appeal has been filed by the Department and the Cross Objection filed by the Assessee against the order of the .....

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order of the AO be restored. 3 Appellant craves leave to modify/ amend or add anyone or more grounds of appeal. 3. I have heard both the parties and perused the material on record. From the above, I find that the tax effect in the Revenue s Appeal is less than ₹ 10,00,000/-, therefore, the Department s Appeal is not maintainable, in view of the Circular No. 21/2015 dated 10th December, 2015 issued vide F.No. 279/Misc. 142/2007- ITJ (Pt.) by the CBDT. For the sake of convenience, the releva .....

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escribed above. Filing of appeal in such cases is to be decided on merits of the case. 10. This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/ Tribunals. Pending appeals below the specified tax limits in para 3 above may be withdrawn/ not pressed. Appeals before the Supreme Court will be governed by the instructions on this subject, operative at the time when such appeal was filed. 4. It is not in dispute that the Board s instruction .....

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appeal before the Tribunal. I am also of the view that the said Instructions are applicable for the pending appeals and appeals to be filed henceforth in Tribunal. Accordingly, the Revenue s Appeal is dismissed. ASSESSEE S CROSS OBJECTION NO. 283/DEL/2015 6. The assessee has raised the following grounds in its Cross Objection:- 1.1 On the facts and circumstances of the case and in law, the learned Assessing officer has erred in assessing the sum of ₹ 33,75,400 being 'profit from sale .....

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nked deduction in accordance of the provisions of Section 11(1A) of the Act. Therefore the Income chargeable to tax in the hands of assessee having compiled with the provisions of Section 11(1A) is Nil. 1.3. On the facts and circumstances of the case and in law, the learned CIT(A) has allowed the assessee relief of ₹ 20,49,000/- only without appreciating the facts of the case and in line with the requirements of the Act under section 11(1A) of the Act but the learned CIT(A) has erred in ho .....

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f the Act, it is eligible for deduction under section 11(1A) of the Act. Therefore, respondent prays to delete the balance addition of ₹ 13,26,400/- sustained by learned CIT(A) as the same is unjustified in law. The Respondent craves leave to add, alter, amend, vary, omit or substitute any of the aforesaid cross objections at any time before or at the time of hearing of the matter. 7. The brief facts of the case are that the assessee-society registered with the Registrar of Society, Uttar .....

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peal of the assessee. 9. Against the order of the ld. CIT(A), Assessee has filed the Cross Objection before the Tribunal. 10. During the hearing, Ld. Counsel of the Assessee stated that the Assessing officer has erred in assessing the sum of ₹ 33,75,400 being 'profit from sale of land, as income from Capital Gain in the hands of the assessee when the amount of capital gain had been invested in accordance of the provisions of Section 11(IA) of the Act. He further stated that the Assessi .....

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Lastly, Ld. Counsel of the assessee further stated that Ld. CIT(A) has allowed the assessee relief of ₹ 20,49,000/- only without appreciating the facts of the case and in line with the requirements of the Act under section 11(1A) of the Act but the learned CIT(A) has erred in holding that the deduction under section 11(1A) is restricted to ₹ 20,49,000.00 only instead of allowing full relief to the assessee as the complete amount has been invested in accordance with section 11(1A) of .....

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er hand, ld. DR has strongly opposed the Cross Objection and stated that since the Revenue s appeal has been dismissed, as aforesaid, the assessee s Cross Objection is not maintainable as it did not survive and should be dismissed as infructuous. 12. I have heard both the parties and perused the records available with us, especially the order of the Ld. First Appellate Authority. After perusing the impugned order of the Ld. CIT(A), I find that Ld. CIT(A) has elaborately discussed the issues in d .....

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en held to be non-charitable entity nor the new assets have been held to be purchased for purposes other than charitable nor it has been held that the new assets are not qualified for such deduction. Denial of the deduction u/s. 11(1A) on the ground cited by the AO is not reasonable. From the facts of the case it transpires that the assessee society has sold two properties on 31.3.2010 but claiming to have received advance against these sales, the assessee has claimed to have made investments in .....

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eliberation. It is seen that the when the advance was given for new capital asset and FDs were purchased, the assessee had not received commensurate advance out of sale consideration. When assessee paid advance of ₹ 21 Lacs for purchase of new asset, it had received only ₹ 6 lacs towards sale consideration. Similarly, when FDs were purchased for ₹ 30 Lac, it had received another sum of only ₹ 20 Lacs advance out of sale consideration. Thus only ₹ 26 Lacs could be sa .....

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a). The Ground no 1 of appeal is partly allowed. 12.1 After perusing the aforesaid findings of the Ld. CIT(A), I am of the view that the provisions of Section 11(1A) are clearly applicable in facts and circumstances as neither the assessee has been held to be noncharitable entity nor the new assets have been held to be purchased for purposes other than charitable nor it has been held that the new assets are not qualified for such deduction. It reveals that the assessee society has sold two prope .....

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