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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
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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.