TMI Blog2021 (8) TMI 1357X X X X Extracts X X X X X X X X Extracts X X X X ..... of the conditions laid down in the respective provision is of overriding importance. The assessee, in the instant case, claimed that, on facts, it has complied with the provisions of Section 11(1) of the Act read with Explanation (1)(1)(b) thereto towards utilization of CSR money received and thus entitled to tax benefits available to the charitable trust. We observe that the claim towards actual application of income in the immediately next financial year is a question of fact. The aforesaid fact thus requires suitable examination at the end of the AO to enable him to form a view on entitlement of tax benefits u/s 11 of the Act in accordance with law and in terms of observations made hereinabove. We accordingly consider it expedient ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount as on 31.03.2011 of Rs.1,44 ,11,0 03/ - out of grant received from Essar Limited at the fag end of the year as income of the society for the year under consideration without considering the fact and circumstances of the case properly and judicially. 2) On the facts and in the circumstances of the case, Commissioner of Income- tax (Appeals) erred in confirming action of Assessing Officer in not allowing exemption u/ s 1 1 merely for procedural default , if any, without considering the facts and circumstances of the case properly and judicially. 3. We have heard the rival submissions and perused the case records. The controversy in the present case revolves around the entitlement of benefits to the charitable trust under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee that in terms of Explanation 1 to Section 11(1) of the Act, the assessee is entitled in law to extend the period of application of income for specified purposes in the immediately next financial year also. Such application will be deemed as adequate compliance of set apart/application of donation accumulated for specified purposes. It is reiterated on behalf of the assessee that money has been actually utilized in the immediate next year and therefore substantial compliance of the law has been carried out despite deficiency in not making an express written communication with the AO to this effect at the time of filing return of income. The return of income read with computation of income clearly discloses the intent of the assessee to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovision is of overriding importance. The assessee, in the instant case, claimed that, on facts, it has complied with the provisions of Section 11(1) of the Act read with Explanation (1)(1)(b) thereto towards utilization of CSR money received and thus entitled to tax benefits available to the charitable trust. 6. In this backdrop, we observe that the claim towards actual application of income in the immediately next financial year is a question of fact. The aforesaid fact thus requires suitable examination at the end of the AO to enable him to form a view on entitlement of tax benefits under s.11 of the Act in accordance with law and in terms of observations made hereinabove. 7. We accordingly consider it expedient to set aside the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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