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Income Tax Appellate Tribunal, DIVISION BENCH’A’, CHANDIGARH
Before: SMT. DIVA SINGH & DR. B.R.R. KUMAR
IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH’A’, CHANDIGARH BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER ITA No.535/Chd/2017 Assessment Year: 2010-11
Haryana Rajya Bal Bhawan Vs. The ITO (Exemptions) Charitable Trust Ambala Karnal
PAN No. AAATH4451N
(Appellant) (Respondent)
Assessee By : Shri. Gurjeet Singh Revenue By : Smt. Chandrakanta
Date of hearing : 27/08/2018 Date of Pronouncement : 31/08/2018 ORDER PER DR. B.R.R. KUMAR, A.M:
The present appeal has been filed by the Assessee against the order of the Ld. CIT(A) Karnal dt. 03/01/2017.
In the present appeal Assessee has raised the following grounds:
Because the action is being challenged on facts & law for the initiation, continuation and conclusion of the reassessment proceedings u/s 147 r.w. 148 of the Act at an amount of Rs. 49,30,248/-. 2. Because the addition of Rs. 49,30,248/- made u/s ll(l)(a) is being challenged on facts & law and the chargeability is only on the receipts of the Grant-in-Aid from the state U/A 12 of the Constitution of India. 3. Because the action is being challenged on facts & law for wrongly treating the grants made by Government for specific purposes to be income chargeable to tax. 4. Because the action is being challenged on facts & law for non-filing of Form No. 10 is a technicality which cannot be utilized for declining the claim of exemption (2017) 145 DTR 0415 (Kar).
Brief facts of the case are that the assessee had gross receipt of Rs.1,51,67,359/-and under the provisions of Section 11(1)(a) 85% of income i.e; Rs. 1,28,92,225/- has to be applied. The Assessing Officer held that since an amount of Rs. 79,62,007/- only was utilized and since the assessee has not submitted Form -10 for accumulation of funds under section 11(2), he brought
the income of Rs. 4,93,0248/- to tax. It was argued by the Ld. AR that the assessee has received only Rs. 7960/- through grants in aid against the observation of the Assessing Officer. He filed additional evidences consisting of Audit Report under section 12A(b) of the Act in the Form 10B in accordance with the rules which has been admitted as it goes to the root cause of the addition. 4. Since, the additional evidences are not available for the Revenue the matter is being remanded back to the file of the Assessing Officer to take a decision in accordance with the provisions in force after duly considering the Audit Report filed by the Assessee. 5. As a result appeal of the Assessee is allowed for statistical purposes.
Order pronounced in the open Court.
Sd/- Sd/- (DIVA SINGH) (DR. B.R.R. KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated : 31/08/2018 AG Copy to: 1. The Appellant 2. The Respondent 3. The CIT 4. The CIT(A) The DR 5.