TMI Blog2022 (10) TMI 755X X X X Extracts X X X X X X X X Extracts X X X X ..... other income earned from assets held for charitable purposes - The assessee has applied a sum for charitable purposes, meaning thereby, the amount applied by the assessee for charitable purposes has exceeded the amount of other income referred above. Hence, there was no necessity for the assessee to accumulate income to the extent of 15% u/s 11(1)(a) of the Act. It is pertinent to note that the exemption of 15% allowed u/s 11(1)(a) of the Act is not a standard deduction allowed. It only allows accumulation of income without any conditions, if there is any shortfall in application of income, i.e., if the application of income falls short of 85% of the income. In the instant case, we have seen that there is no shortfall in application of inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 passed by Ld CIT(A), National Faceless Appeal Centre, New Delhi and it relates to the assessment year 2015-16. The assessee is aggrieved by the decision rendered by Ld CIT(A) on the following issues:- (a) Non-granting of exemption of 15% allowed u/s 11(1)(a) of the Act. (b) Non-granting of TDS of Rs.13,30,586/- 2. The assessee is a charitable trust registered u/s 12A of the Act. The return of income filed by the assessee for the year under consideration was processed u/s 143(1) by the AO, wherein the exemption of Rs.4,97,45,885/- claimed by the assessee u/s 11(1)(a) of the Act was not allowed. The said claim relates to the amount accumulated to the extent of 15% of income u/s 11(1)(a) of the Act. Hence the assessee filed a rectif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of 15% of income. He submitted that even though the Ld CIT(A) has rejected the claim on different reasoning, yet his final decision complies with the provisions of sec.11(1)(a) of the Act. 6. We have heard rival contentions and perused the record. The assessee has placed computation of income at page 57 of the paper book. A perusal of the same would show that the assessee has earned capital gains of Rs.22.75 crores and the same has been claimed as exempt u/s 11(1A) of the Act. From the order passed by Ld CIT(A), we notice that the said claim has been accepted by the AO. 7. The remaining income earned from assets held for charitable purposes is Rs.26,85,36,700/-, which consisted of corpus donations of Rs.16,44,04,129/- and other inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rdingly, we hold that the assessee is not eligible to claim accumulation of income u/s 11(1)(a) of the Act and hence the AO was justified in rejecting the claim for accumulation of income u/s 11(1)(a) of the Act. 10. The next issue relates to the claim for credit of TDS amount. The Ld A.R submitted that certain income received by the assessee is split between two or more years under accounting principles. Accordingly, the TDS credit was also split between those years in proportion to the income offered in each of the year. The Ld A.R submitted such kind of split up is permitted under Rule 37BA of Income tax Rules. However, the AO has assessed income so offered by the assessee without allowing corresponding tax credit. The Ld CIT(A) also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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