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Facts
The assessee appealed against orders from the NFAC. The appeals were clubbed due to identical issues. The assessee derived income from dividend and agricultural sources, claiming exemption under Section 10(34) and 10(1) respectively. The AO denied this exemption and invoked Section 11, while the CIT(A) allowed the appeal.
Held
The Tribunal held that income exempt under Section 10 cannot be subjected to Section 11. They relied on previous decisions, including that of the Jurisdictional High Court in DIT(E) vs. Jasubhai Foundation, which supported the assessee's claim. For another ground concerning disallowance of Rs. 1,15,00,000/- for construction of a building, the Tribunal restored the matter to the AO for further verification.
Key Issues
Whether dividend and agricultural income claimed as exempt under Section 10 are taxable under Section 11, and the validity of disallowing an advance paid for construction of a trust building.
Sections Cited
10(34), 10(1), 11, 10, 10(36), 10(38), 13, 11(2), 11(1), 198, 194A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “E” BENCH, MUMBAI
Before: SHRI SANDEEP GOSAIN, HON’BLE & SHRI PRABHASH SHANKAR, HON’BLE
आदेशकी�ितिलिपअ�ेिषत/Copy of the Order forwarded to : Copy of the Order forwarded to : अपीलाथ�/ The Appellant 1. / The Appellant ��थ�/ The Respondent 2. संबंिधतआयकरआयु�/ Concerned Pr. CIT 3. / Concerned Pr. CIT आयकरआयु� अपील 4. ( ) / The CIT(A) / The CIT(A)- िवभागीय�ितिनिध ,आयकरअपीलीयअिधकरण 5. आयकरअपीलीयअिधकरण,मुंबई/DR,ITAT, Mumbai, गाड�फाई/Guard file. 6.
आदेशानुसार/ BY ORDER, आदेशानुसार TRUE COPY
Assistant Registrar आयकरअपीलीयअिधकरण आयकरअपीलीयअिधकरण ITAT, Mumbai Sr. Initial No. Date 1. Draft dictated on Draft dictated on 19/11/2024 Sr.PS 2. Draft placed before author Draft placed before author 21/11/2024 Sr.PS
Draft proposed & placed Draft proposed & placed JM/AM before the second member before the second member 4. Draft discussed/approved discussed/approved JM/AM by Second Member. by Second Member. 5. Approved Draft comes to Approved Draft comes to /11/2024 Sr.PS/PS the Sr.PS/PS 6. Kept for pronouncement on Kept for pronouncement on /11/2024 Sr.PS 7. File sent to the Bench Clerk File sent to the Bench Clerk /11/2024 Sr.PS 8. Date on which file goes to Date on which file goes to the AR 9. Date on which file goes to which file goes to the Head Clerk. the Head Clerk. 10. Date of dispatch of Order. Date of dispatch of Order. 11. Dictation Pad is enclosed Dictation Pad is enclosed Yes