TMI Blog2019 (4) TMI 361X X X X Extracts X X X X X X X X Extracts X X X X ..... nt exemption u/s 11 of the Act because of the orders passed by the Tribunal granting registration u/s 12AA of the Act in favour of the assessee. We, accordingly, set aside the orders of the authorities below and restore the matter in issue to the file of AO with direction to grant exemption to the assessee u/s 11 of the Act after satisfying the conditions of the same as per law by giving reasonable sufficient opportunity of being heard to the assessee. Addition made on account of infrastructure fund - HELD THAT:- The assessee has now been granted registration u/s 12AA of the Act and thus, assessee is entitled for exemption from income u/s 11 of the Act as per law. Even if the infrastructure reserve fund may be treated as income of assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue : Smt. Naina Soin Kapil, Sr. DR ORDER PER SHRI BHAVNESH SAINI, J.M. All the appeals by assessee are directed against different orders of Ld.CIT(Appeals)-Meerut dated 28.03.2014 for AYs 2009- 10 and 2010-11, Ld. CIT(Appeals)-Ghaziabad dated 22.06.2016 for AY 2012-13. 2. We have heard Ld. Representatives of both the parties and perused the material available on record. 3. In the present case, all the above appeals were decided by the Tribunal, vide order dated 19.07.2018, whereby all the appeals of the assessee were dismissed. The assessee filed three miscellaneous applications in MA Nos. 551 to 553/Del/2018. The Tribunal recalled its earlier order dated 19.07.2018. All the appeals were directed to be listed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are of the view that the matter requires reconsideration at the level of the AO. Ld. Counsel for assessee pointed out from the findings of the Ld.CIT(A) in AY 2012-13 that assessee pleaded before Ld.CIT(A) that appeals of the assessee has been allowed by ITAT granted registration to the assessee u/s 12AA of the Act and that departmental appeal has been dismissed by the Allahabad High Court. The Ld. CIT(A), however, rejected the claim of the assessee because matter is pending in SLP before the Supreme Court. Ld. Counsel for assessee submitted that ITAT A Bench in the case of the assessee in ITA No. 905/2011, vide order dated 29.04.2014 has allowed the appeal of the assessee directing the CIT to grant registration to the assessee w.e.f. th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee u/s 11 of the Act after satisfying the conditions of the same as per law by giving reasonable sufficient opportunity of being heard to the assessee. 7. In the result, appeal of the assessee is allowed for statistical purposes. ITA No. 4291/Del/2014 (AY 2010-11): 8. In this year facts are same, the AO denied exemption u/s 11 of the Act because registration u/s 12AA have been denied to the assessee. The AO completed the assessment at ₹ 2.22 crores. The Ld. CIT(A) dismissed the appeal of assessee. Following the reasons for decision for AY 2009-10 (supra), we set aside the orders of the authorities below and restore the matter in issue to the file of AO with direction to grant exemption to the assessee u/s 11 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure reserve fund kept pending on account of surplus, Ld. CIT(A) found that the receipt in question is Revenue in nature, and accordingly, dismissed the appeal of the assessee. 11. After considering the rival submission, we are of the view that the matter requires reconsideration at the level of the AO. As regards exemption u/s 11 of the Act, issue is same as has been considered and decided in AYs 2009-10 2010-11 (supra). Following the reasons for decision in these years, we set aside the orders of the authorities below and restore the matter in issue to the file of AO with direction to grant exemption to the assessee u/s 11 of the Act after satisfying the conditions of the same as per law by giving reasonable sufficient opportuni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d upon fundings with regard to exemption u/s 11 of the Act. We have already restored the issue of exemption u/s 11 of the Act to the AO for fresh decision as per law. Further, the authorities below have not appreciated the fact that assessee claimed that infrastructure fund was received for development activities from the State Authorities, the assessee has to spend the amount on the same as per approval of the State Authorities. Thus, there may not be any profit element out of the same sources. It may also be noted here that whatever amount has been spent by assessee on the same issue, the AO has accepted that assessee spent the same amount as per the directions of the State Authorities. Then in that event it is difficult to believe that p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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