TATTWAJNANA VIDYAPEETH,MUMBAI vs. DCIT(E)-2(1), MUMBAI

Facts

The assessee, Tattwajnana Vidyapeeth, filed appeals against orders passed by the NFAC for AYs 2009-10, 2010-11, and 2011-12. The appeals were heard together due to identical issues. Ground Nos. 1 and 2 challenging the initiation of reassessment proceedings were dismissed as not pressed. Ground Nos. 3 and 4 were related to dividend and agricultural income claimed as exempt under Section 10, which the AO denied by invoking Section 11. Ground No. 5 concerned the disallowance of Rs. 1,15,00,000/- for advance given for construction.

Held

The Tribunal held that issues in Ground Nos. 3 and 4 are covered in favor of the assessee by the decision of the Co-ordinate Bench in the assessee's own case for AY 2012-13, relying on High Court decisions. For Ground No. 5, the Tribunal noted that additional evidence was presented for the first time, and therefore, restored the matter to the AO for fresh examination. Similarly, for Ground No. 6 (raised in AY 2011-12), the issue of TDS refund was held to be covered in favor of the assessee by a Co-ordinate Bench decision and was allowed for statistical purposes.

Key Issues

Whether dividend and agricultural income are exempt under Section 10 or subject to Section 11. Whether advance given for construction is a valid application of income under Section 11. Whether TDS refund should be treated as income for exemption purposes.