TMI Blog2020 (6) TMI 334X X X X Extracts X X X X X X X X Extracts X X X X ..... e incurred by the assessee is not correct. CIT(A) after examining each and every detail directed the Assessing Officer to delete the addition. Under the above facts and circumstances of the case the ld. CIT(A) has not violated rule 46A of the I.T. Rules and adjudicated the issue after examining all the details. Under these facts and circumstances of the case, we are of the opinion that no remand report is required, for the reason that the expenditure incurred by the assessee is very clear from the records. CIT(A) rightly directed the Assessing Officer to delete the addition. In view of the above, the ld. CIT(A) not violated rule 46A of the I.T. Rules. - Decided against revenue Addition of building expenditure - HELD THAT:-The addition made by the Assessing Officer is deleted by the ld.CIT(A) by considering the relevant material available on record, no interference is warranted, therefore same is dismissed. Assessment of trust - Assessee has spent 85% of the gross receipts for charitable purpose - HELD THAT:- As per section (11)(1)(a), the income accumulated by the assessee is less than 15%, therefore the entire income of the assessee is exempt u/sec. 11(1) of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led before the Assessing Officer to establish that it was spent for charitable purpose. - Vi Any other ground that may be taken up at the time of hearing before the Hon'ble ITAT - Total tax effect 3,63,96,696/- 3. Facts of the case in brief are that assessee is a charitable trust registered u/sec. 12A of the Act, the objects and activities undertaken by the assessee are as under:- 7.1 Sponsorship - Education of poor and needy children: In 2014 the Trust sponsored the education and care of 3,952 children. (In School: 2,624- In Colleges: 837 -Technical Professional: 270 - Nursing Pharmacy: 96 - Masters, Engineering Medicine: 121 - Studying Abroad: 3 - Not studying: 1). A further 2,000 un-sponsored children are also assisted through the programme. The Trust seeks to promote a person-to-person programme for the principle purpose of caring for poor and deserving children. Through the Trust a Family or Individual sponsors a child and in a spirit of caring and sharing offers support for the education and welfare of the child This support ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the school. There are 329 children (Boys: 221 and Girls: 108) in the school with a staff of 25 (Men: 11 and Women: 14) 7.7 Night Shelter: The Night Shelter for boys is run in a school building of the Vijayawada Municipal Corporation near the Benz Circle area. This provides a rof over their heads for boys who are on the streets. n opportunity for boys who have , for the welfare of the street children in Benz Circle area. Dinner and breakfast are provided. The children are counseled and repatriated of possible. 7.8 Observation Home (Home for Juvenile Delinquents), Vijayawada: On the request of the Superintendent we are offering our service at the Government Observation Home for Boys. Our work at the Home is to ensure that the boys are treated in a humane way. Our Trust provides on a regular basis toilet items, clothes, bedsheets, mats for the comfort of the boys and cleaning products to ensure that the boys live in a clean environment. We have also provided a TV and indoor games for the entertainment of the boys. Mosquito nets and repellents are- provided to the Home. We also supply milk, fruits and chicken to supplement the boys' diet. On an average there were 30 bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ir Cutting and Beautician courses and for Hotel Management. On our Daddy's Home campus we also have training for older boys and girls in Tailoring, Embroidery, Book Binding, Bag making and Footwear making. Several are also trained in Electrical work, Plumbing, Air Conditioning and Building Painting. 7.12 Slum Schools: We are working in 7 slum areas in Vijayawada: 1. Brahmarambhatiuram 2. Kandrika/ Rajiv Nagar 3. New Rajarajeswaripeta 4. Alankar Centre/Sambamurty Road 6. Autonagar 7. Vambey Colony 8. Bhaskaraopeta In the slums our activity is focussed on the children. Since many of the street children come from the slums our activity here is a preventive measure. In each of these slums we have started a Literacy Centre. At New Raja rajeswari peta we also run a regular Elementary and High school in collaboration with the Vijayawada Municipal Corporation. In these Literacy centres the children are also given milk and a mid-day meal. Recreation facilities for the children are also provided in these centres. After learning the rudiments of reading and writing the children are placed in regular schools in the area. There are 1,31 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les. In the assessment order, the Assessing Officer has noted that the assessee has debited expenses on account of construction to the tune of ₹ 3,63,96,696/- during the year. During the course of hearing, on 28/03/2016 only partial bills were furnished. The assessee not filed other details such as where such activity has happened, what is the activity undertaken and whether Government permission were obtained are not were not furnished. He further observed that the assessee furnished the photographs and submitted that the construction activity carried by the assessee pertains to existing structure, however no details were given by the assessee. Therefore, the Assessing Officer adjourned the case to 30/03/2016 and asked the assessee to furnish further details. The assessee could not furnish any further details, therefore the Assessing Officer considered the report of the Inspector submitted earlier on 15/02/2016 wherein he stated that the total construction cost claimed by the assessee from last several years is ₹ 20 to 25 crores, however, the total cost of buildings appearing on the land cannot exceed ₹ 10 to 12 crores. Accordingly, the Assessing Officer has d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e very clear that the assessee is running various homes for different purposes to run such huge activity various buildings are required, therefore the assessee continuously carrying the construction activity according to the objects of the society, therefore the Assessing Officer without examining the issue and without considering the details filed, simply disallowed the entire expenditure incurred by the assessee is not correct. Further, the assessee started the construction activity in earlier years i.e. A.Ys. 2010-11, 2011-12, 2012-13 2014-15 all the years the Assessing Officer has allowed the expenditure incurred by the assessee. The only year under consideration, the Assessing Officer without giving proper opportunity has disallowed the expenditure incurred by the assessee is not correct. Therefore, the ld. CIT(A) after examining each and every detail directed the Assessing Officer to delete the addition. Under the above facts and circumstances of the case the ld. CIT(A) has not violated rule 46A of the I.T. Rules and adjudicated the issue after examining all the details. Under these facts and circumstances of the case, we are of the opinion that no remand report is required ..... X X X X Extracts X X X X X X X X Extracts X X X X
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