TMI Blog2019 (1) TMI 2023X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Hon' High Court and also from the facts relevant to the assessment years 2009-10 and 2010-11. Allowing depreciation despite claiming benefit of application of the purchase of the assets Tribunal [ 2018 (6) TMI 443 - ITAT DELHI ] following the decision of the Hon ble Supreme Court in the case of CIT Vs. Rajasthan and Gujarat Charitable Foundation Poona [ 2017 (12) TMI 1067 - SUPREME COURT ] allowed the claim of the assessee. Claim of the accumulated funds was also allowed by the Tribunal as upheld that the activity of the assessee are charitable in nature and, thus, the claim of the assessee for carry forward under section 11(2) has been rightly allowed by the Ld. CIT(A) - Decided against revenue. - ITA No.3615/Del/2015 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 18.03.2014. 4. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in allowing the claim of accumulated funds of Rs.5,98,77,553/- u/s 11(2) in absence of benefit of exemption u/s 11 and 10(23C) of the Act. 5. The appellant craves leave to add, to alter or amend any ground of appeal raised above at the time of hearing. 2. The assessee society working under the Ministry of commerce, government of India is engaged in giving barcode technology to its customers. For the year under consideration, the assessee filed return of income on 24/09/2010 declaring nil income. The case was selected for scrutiny and notice under section 143(2) of the Income-tax Act, 1961 (in short the Act ) was issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure of business or commerce and therefore hit by the proviso to section 2(15) of the Act. The break-up of the addition made by the Assessing Officer are as under: Rs.7,51,01,019/- on account of exempt income(excess of income over expenditure) Rs.13,64,241/- on account of depreciation disallowed. Rs.5,98,77,553/- on account of disallowance of accumulation carried forward u/s 11(2). 2.1 Aggrieved with the above additions, the assessee filed appeal before the Ld. CIT(A) and submitted that the registration granted to the assessee society was cancelled by order under section 12AA dated 30/06/2009 w.e.f. assessment year 2009-10, however, the appeal filed by the assessee against the same has been allowed by the Tribunal and the Hon ble High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of addition made on identical grounds. He also submitted that similarly in assessment it 2012-13, the assessee has been granted relief on the all the three issues of addition of excess of receipt or the expenditure, depreciation and allowing of claim of accumulated funds. Accordingly, he submitted that order of the Ld. CIT(A) might be upheld in the year under consideration also. 5. We have heard the rival submission and perused the relevant material on record. We find that subsequent to the order of the Assessing Officer, the assessee has been granted registration under section 12AA(1) as well as approved under section 10(23C)(vi) by the Hon ble High Court. The relevant finding of the Hon ble High Court in ITA 333/2018 is reproduced as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... own case. Further, for the assessment years 2009-10 and 2010-11 the Ld. CIT (A), vide orders dated 24.12.2013 and 23.03.2015, allowed the plea of the assessee. After recording all these facts in the impugned order Ld. CIT (A), considered the assessment order and contentions of the assessee in the light of the orders referred to above and held that the activities of the assessee are covered u/s 2(15) of the Act under the sixth limb and that the assessee is eligible for exemption u/s 11(1) of the Act. There is no change of circumstances since the date of the order of the Honhle High Court and also from the facts relevant to the assessment years 2009-10 and 2010-11. In the circumstances, while respectfully following the order of the Honhle Ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of CIT Vs. Rajasthan and Gujarat Charitable Foundation Poona (Civil Appeal No. 7186 of 2014 with Anr.) allowed the claim of the assessee observing as under: 6.4 Further, the Hon'ble Supreme Court, has mentioned in the above judgment that the amendment in section 11(6) of the Act brought vide Finance Act No. 2/2014, which became effective from assessment year 2015-16, but the said amendment has been held by the Hon'ble Delhi High Court as prospective in nature. 9. The claim of the accumulated funds was also allowed by the Tribunal (supra) in view of the exemption already granted, observing as under: 7.1 While adjudicating the ground No. 1, we have already upheld that the activity of the assessee are chari ..... X X X X Extracts X X X X X X X X Extracts X X X X
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