TMI Blog2021 (6) TMI 1033X X X X Extracts X X X X X X X X Extracts X X X X ..... /contracts and in terms thereof the amount of unutilized grants is liable to be refunded. AO while passing an order u/s 143(3) has wrongly considered the amount of unutilized grant in aid as income and disallowed on ad-hoc basis from the expenses incurred or funds applied for charitable purposes. AO has also wrongly denied deductions u/s 11(1) to the society which is not just and proper once, the assessee society has given the details of the unutilized grant in aid and expenses and fulfills the criteria prescribed under Section 11(1) - CIT(A) has taken a proper cognizance of all the relevant facts thereby calling remand report from the AO. The Assessing Officer has not given any adverse comment in respect of the remand report regarding t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 231650681. The assessee is also notified u/s 80G (5)(vi) vide order dated 16/7/2004 and notified u/s 10(23C)(iv) of the Income Tax Act, 1961 vide Notification No. 77/2002 dated 24/4/2002. The Society is also an approved institution notified u/s 35AC of the Income Tax Act, 1961 vide Notification No. 297-2002/F No. NC-90/2002 dated 11/10/2002 by the Government of India, Ministry of Finance and Company Affairs. The assessee Society filed its return of income declaring NIL income on 27/10/2005. In response to notice u/s 142(1) and 143(2) from time to time the Senior Manager Finance, Treasurer and Executive Director attended the proceedings and filed all the requisite details, information and explanations, which is already on record. The as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies were provided to the assessee. 6. The Ld. AR relied upon the order and the order of the CIT(A). 7. We have heard both the parties and perused the material available on record. It is pertinent to note that the source of funding for the various projects run by the society is from government grants, state government grants, FCRA Funds/contributions from various countries and donations etc. The accounts of the assessee are subject to statutory audit and also audit by the Government Agencies like AGCR and by the auditors appointed by the funding agencies. These facts were not disputed by the Assessing Officer. The grant/funds received from Government, various Ministries and grants from foreign contributions/funds are in pursuance to ag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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