TMI Blog2022 (8) TMI 1071X X X X Extracts X X X X X X X X Extracts X X X X ..... Judicial Member And Shri S Balakrishnan, Hon ble Accountant Member For the Assessee : Sri A. Chakradhar, CA For the Revenue : Sri MN Murthy Naik, CIT-DR ORDER PER S. BALAKRISHNAN, ACCOUNTANT MEMBER : 1. This appeal filed by the Revenue is against the order of the Learned Commissioner of Income Tax (Appeals), Vijayawada [Ld. CIT(A)] in appeal No. 10119/CIT(A)/VJA/2019-20 dated 23/09/2020 arising out of the order passed U/s. 143(3) r.w.s 147 and 254 of the Income Tax Act, 1961 [ the Act ] for the AY 2007-08. 2. Brief facts of the case are that the assessee is an Urban Development Authority constituted under Andhra Pradesh Urban Area (Development) Act having registration U/s. 12AA of the Act w.e.f. 1/4/2003. The as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of appeal through e-proceedings on 1/9/2020. The Ld. CIT(A) while admitting the additional grounds of appeal allowed the appeal of the assessee and directed the AO to delete all the additions aggregating to Rs.5,88,17,622/-. The Ld. CIT(A) also observed that the assessee s representative has not pressed the original grounds raised in the appeal and accordingly dismissed all the original grounds of appeal. Aggrieved by the order of the Ld. CIT(A), the Revenue is in appeal before us. 3. The Revenue has raised the following grounds of appeal: (i) The Ld. CIT(A) erred in not considering the facts enumerated in the order of cancellation of registration U/s. 12AA(3) of the Act passed by the Hon ble Chief Commissioner of Income Tax (OSD) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee u/s. 12AA without any proven corroborative evidence except by holding that there is no material on record to establish that the assessee is carrying on commercial activities other than objects to the assessee. (vi) The Ld. CIT(A) ought to have observed the fact that an amount of Rs. 1,57,27,028/- can be considered as application of income or not ; CIT(A) neither discussed nor called for remand report from the AO for the said expenditure whether the same can be considered as application of income or not even after considering the exemption u/s 11 to the assessee as per the ITAT directions. (vii) Whether CIT(A) is correct in coming to the conclusion that depreciation of Rs. 78,94,909/- is to be allowed to the assessee basing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at since the cancellation of the registration has been restored the assessee is entitled to claim exemption u/s. 11 of the Act. 5. We have heard the rival submissions and perused the materials on record and the orders of the Ld. Revenue Authorities. 6. With respect to Grounds No. (i), (ii) (iii) since the registration u/s. 12A of the Act was restored by the Hon ble ITAT, the Ld. CIT(A) has rightly followed the directions of the Hon ble ITAT and has directed the AO to delete the additions of Rs. 5,88,17,622/- which was passed vide assessment order u/s. 143(3) r.w.s 254 of the Act, dated 30/03/2011 consequent to the cancellation of the registration u/s. 12AA of the Act. We find that since the Hon ble Tribunal has restored the registra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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