9911796707
TMI Blog2021 (1) TMI 777X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal of the Revenue for adjudication. The grounds raised by the Revenue are reproduced as under: (i) On the facts and in the circumstances of the case and in law, Ld. CIT(A) has erred in granting the exemption u/s. 10(26B) to the assessee since as per ITR-7 (other details, Para-B) of the e-filed return, the assessee has himself denied the claim of exemption u/s. 10 of the I.T. Act and therefore, Ld. CIT(A) has erroneously allowed exemption to the assessee, which was never claimed by the assessee. (ii) The appellant craves leave to add, to alter or amend any ground of appeal raised above at the time of hearing. 3. Briefly stated facts of the case are that the assessee society was setup on 24/03/1992 and started functioning unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itional evidences. The Ld. CIT(A), after taking into consideration the additional evidences, the remand report, the rejoinder of the assessee and assessment records of past and subsequent years, held as under: "6.8 In view of the discussion above, it is held that the Assessing Officer's action in denying exemption under section 11 and disallowing the entire expenditure for want of furnishing the requisite details was not correct since a claim for exemption was never made under section 11, a fact which could have been verified from the income tax return for the year under consideration. 6.9 In view of discussion above and since the assessee has been allowed exemption under section 10(26B) in the past in assessment years and also for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - and thus merely a typographical error on front page of the return of income, the assessee cannot be denied exemption under section 10 of the Act. He referred to para-6.5 of the order of the Ld. CIT(A) and submitted that in earlier years the assessee has been granted exemption under section 10(26B) and in the instant assessment year also no exemption has been claimed under section 11 of the Act, and thus action of the Learned CIT(A) is justified. 7. We have heard rival submission of the parties and perused the relevant material on record. The issue in dispute raised before us in grounds of appeal is whether the Ld. CIT(A) is justified in granting exemption under section 10(26B) of the Act, without making any claim by the assessee. Both th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Court have held that although in a situation that books are not produced or where the books are rejected, the Assessing Officer has jurisdiction to assess income by applying a fictional net profit rate, the same must be based on a rational analysis of facts. Various factors have also been mentioned by the Hon'ble Court which could be utilized for the purpose, one of which is the past tax history. The High Court relied upon the decision of the Hon'ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd. (26 ITR 775) to state that a best judgement assessment cannot be made on pure guess work and without any reference to any material at all. Hence, going by the principle laid down, even while doing ex- parte assessment, the pas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... infirmity in the order of the Ld. CIT(A) on the issue in dispute and we, accordingly, we uphold the same. The ground No. 1 of the appeal of the Revenue is accordingly dismissed. 8. The ground No. 2 of the appeal, being general in nature, same is dismissed as infructuous. C.O. No. 134/Del./2017 9. In cross objection following grounds been raised: 1. That in view of the facts and circumstances of the case the CIT(A) has rightly allowed the deduction u/s 10(26B) of the Income Tax Act, 1961 to the assessee after considering the facts and the case, submission of the assessee, remand report of the AO, rejoinder of the assessee and past history of the case. 2. That it is not correct to say that the assessee has not claimed the deduction u ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
