ACIT, CIRCLE (EXEMPTION), JODHPUR vs. M/S. VIDYA BHAWAN SOCIETY, UDAIPUR

ITA 325/JODH/2019Status: DisposedITAT Jodhpur24 March 202318 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s order, finding that the issue regarding violation of Section 13(1)(d)(iii) was covered by a coordinate bench decision and the Hon'ble Rajasthan High Court, which ruled in favor of the assessee. Other grounds raised by the revenue were also rejected.

What were the facts?

The Assessing Officer treated an investment in shares by the assessee society as a violation of Section 13(1)(d)(iii) of the Income Tax Act, leading to additions and disallowances. The CIT(A) allowed the assessee's appeal, deleting these additions.

What were the issues?

Whether the assessee society violated Section 13(1)(d)(iii) by investing in shares, and if so, whether it disentitles them to exemption under Section 11. Also, issues regarding the allowability of capital loss, prior period expenses, and gratuity provision.

Which sections of the Income-tax Act were involved?

Section 11,Section 13(1)(d)(iii),Section 11(5),Section 164(2)

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Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR

For Appellant: Shri Amit Kothari, CA
For Respondent: Shri S.M.Joshi, JCIT DR
Hearing: 23/03/2023

PER KUL BHARAT, J.M.: The present appeal filed by the Revenue for the assessment year 2014-15 is directed against the order of Ld. CIT(A)-1, Udaipur dated 27.06.2019. The Revenue has raised following grounds of appeal:-

1) “On the facts and the circumstances of the case and in law the Ld. CIT(A) has erred in allowing exemption u/s 11 of the I. T. Act, 1961 without appreciating the fact that the assessee society has made investment amounting to Rs. 37,350/- and thus provisions of section 13(1)(d)(iii) r.w.s. 11(5) of the Income Tax Act, 1961 were clearly attracted in this case.

2) On the facts and the circumstances of the case and in law the Ld. CIT(A) has erred in deleting the addition of surplus of Rs. 2,11,32,268/- without appreciating the fact that

The order continues below.

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