TMI Blog2017 (8) TMI 656X X X X Extracts X X X X X X X X Extracts X X X X ..... their guests - 73 meals coupons utilized by the Chairman - Held that:- The number of meals coupons utilized was 73 and the same were utilized for the purpose of providing food to officers and VIPs visiting the Society from various departments / organizations. It was also observed by the Ld.CIT(Appeals) that the Society is located in far away place, where there are no hotels etc. for supply of food. In such circumstances, the assessee has provided food to the officers and their guests visiting the society, signing the coupon on the rear side. The explanation appears to be reasonable and we do not find any reason to interfere with the order of the Ld.CIT(Appeals). Accordingly, the revenue’s appeal on violation of provisions of section 13(1)(c) r.w.s. 13(2)(a) with regard to 73 meals coupons utilized by the Chairman is dismissed. - I.T.A.No.17/Vizag/2015 - - - Dated:- 28-7-2017 - SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER For The Appellant : Shri M.K.Sethi, DR For The Respondent : Shri C Subrahmanyam, AR ORDER PER D.S. SUNDER SINGH, Accountant Member: This appeal is filed by the revenue against the order of the Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he purpose of providing customary meals to guests / officials who came for the purpose of inspections, audits and verifications by Universities, Boards, government institutions and bankers. On such occasions, the members of society have to accompany the officers as a custom. Out of the 3236 meals paid to canteen such meals were only 73 which works out to 2.26% only. However, the AO rejected the assessee s explanation and held that the free meals were provided to specified persons without any compensation or consideration and hence, Section 13(2)(d) is attracted in assessee s case. 2.3. The assessing officer found that an amount of ₹ 300/- was paid to the Chairman towards advertisement for the purpose of wishes to AMC Chairman. Likewise, an amount of ₹ 1,000/- was paid for the purpose of advertisement in newspaper for expressing wishes on retirement of ASWO, Tiruvuru. The Assessing Officer felt that these expenses were not incurred for the objects of the society. However, in view of provisions of Section 13(2)(g), these transactions were not considered as violations u/s 13(1)(c) r.w.s. 13(2)(g) of the Act by the Assessing Officer, however, the same were considered for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... meals coupons utilized were only 73 which works out to 2.26% and further the Ld.CIT given a finding that it is customary on the part of the Society to provide the food etc. to the guests visiting the 1. society on official duty since the Society is located in far away place where there are no hotels etc and the meals was provided to the officers visiting from various departments / organizations should be treated as genuine expenditure for running the society. Hence, the Ld.CIT(Appeals) held that free meals were not utilized by the specified personnel for their personal purposes and accordingly directed the assessing officer to allow the exemption u/s 11 of the I.T.Act. 5. Aggrieved by the order of the CIT (Appeals), the revenue is in appeal before us and the revenue has raised the following grounds of appeal. 1. The order of the Ld.CIT(Appeals) is erroneous both on facts and in law. 2. The Ld.CIT(A) erred in law in directing the allow exemption u/s 11 of the Income Tax Act, 1961, to the assessee when the provisions of Sec.13(1)(c) r.w.s. 13(2)(a) of the Act are fully attracted in the case of the assessee society, as clearly established by the AO in the assessment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d.DR argued that the case should be remitted back to the file of the Assessing Officer to examine the genuineness and correctness of the documents produced before the Ld.CIT(Appeals). 5.2. On the other hand, the Ld. AR relied on the orders of the Ld.CIT(Appeals). 6. With regard to the second issue on violation of provisions of section 5.3. We have gone through the submissions of the both the parties and perused the material placed on record. The AR has filed paper book containing 82 pages but without certification / undertaking. Therefore, the paper book filed by the Ld.AR is ignored. In this case, the assessee has given a loan of ₹ 8,15,000/- to Shri K.Ravi Kumar, founder trustee and a sum of ₹ 3,15,056/- was outstanding on 31.03.2011. As per the assessment order, it is observed that the assessee has explained before the Assessing Officer that the amount was given for purchase of buses and the same could not be materialized and the amount was lying with the founder. However, no evidence was furnished by the assessee to the Assessing Officer. The issue regarding payment of advance to Shri Akula Mohana Chalapati Rao on 13.10.2010 came before the CIT(Appeals). No ..... X X X X Extracts X X X X X X X X Extracts X X X X
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