9911796707
TMI Blog2021 (2) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... the case, Ld. CIT(A) has erred in law and on facts in not allowing the exemption u/s 11 & 12 and more so when registration u/s 12AA has been allowed to the appellant by Hon'ble Allahabad High Court. 2. That having regard to the facts and circumstances of the case, Ld. CIT (A) has erred in law and on facts in confirming the action of Ld. AO in making addition of Rs. 2,99,11,347/- on account of surplus in infrastructure reserve fund by treating it revenue receipts instead of earmarked fund as claimed by the appellant and impugned addition has been made by recording incorrect facts and findings and without observing the principles of natural justice. 3. That in any case and in any view of the matter, action of Ld. CIT(A) in confirming t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Court, which was pending at the time of passing the assessment order and, therefore, the Assessing Officer did not allow benefit of exemption eligible to trust/entity registered under section 12A of the Act. The learned Assessing Officer also held the amount of infrastructure fund of Rs. 2,99,11,347/- taken directly by the assessee in balance-sheet, as income of the assessee during the year under consideration. 2.1 On further appeal, the Learned CIT(A) upheld the denial of exemption claimed under section 11 to 13 of the Act by the assessee. He also sustained addition of Rs. 2,99,11,347/- on account of surplus in infrastructure reserve funds. Aggrieved with the finding of the Ld. CIT(A), the assessee is in appeal before the Tribunal raisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... records and after giving due opportunity to the assessee to represent its case." 5. We find that the registration under section 12A of the Act has been restored by the Tribunal and till date said order has not been reversed by higher appellate forum, therefore, the assessee is entitled to the benefit of exemption under section 11 to 13 of the Act. Respectfully following the finding of the Tribunal (supra), we are reminding matter back to the file of the Assessing Officer to compute the income in accordance with section 11 to 13 of the Act, after examining the records and after providing the opportunity of being heard to the assessee. The ground No.1 of the appeal is accordingly allowed for the statistical purposes., 6. Regarding ground N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s difficult to believe that part amount is capital receipt and part would be Revenue in nature. Therefore, there was no justification for Ld. CIT(A) to hold that the impugned receipt is Revenue in nature. This issue also requires reconsideration in view of the fact that assessee is entitled for exemption u/s 11 of the Act. We, accordingly, set aside the orders of the authorities below on the issue of infrastructure fund as well and restore the issue to the file of AO with direction to redecide the issue as per law by giving reasonable opportunity of being heard to the assessee." 7. We find that the Tribunal has held that there may not be any profit element in receipt of infrastructure fund from state authorities for infrastructure develop ..... X X X X Extracts X X X X X X X X Extracts X X X X
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