The present appeals have been preferred by the revenue against the order dated 24.04.2017 and 15.02.2019 passed u/s 250(6) of the Income Tax Act, 1961.
ITA No. 1135/CHD/2017
IN THE INCOME TAX APPELLATE TRIBUNAL,
CHANDIGARH BENCH ‘A’, CHANDIGARH
BEFORE: SHRI SANJAY GARG, JUDICIAL MEMBER
AND SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER
ITA No. 1135/CHD/2017
Assessment Year : 2014-15
M/s C.T. Educational Society,
Greater Kailash Maqsudam,
That theLd. CIT(A)-2, Jalandhar has erred in law as the findings recorded are perverse and contrary to the evidence/material available on record & facts of the case and duly considered by the Assessing Officer.
2. A perusal of the above grounds of appeal reveal that the revenue is aggrieved by the action of the CIT(A) in allowing
exemption u/s 11 of the Income Tax Act,1961 ( in short ‘the Act’ ) to the assessee society on two grounds. Firstly that the
assessee society had made the interest free advances to its Members which transaction was covered under the provisions of Section 13(1) (c) and 13(1) (d) read with Section 13(3) of the Act and further that the assessee Society had paid excessive salary to its Members having contravened the provisions of Section 13(2) (c) of the Act. The ld. Assessing Officer ( in short ‘AO’ ) made the addition of Rs. 1,98,48,600/- on account of notional interest @ 12% P.A.
3. In the course of appellate proceedings, the AR of the appellant was asked vide note sheet entry dated 23.03.2017 as to whether any TDS under the provisions of sect ion 194- IA was made by the society on part payment of sale consideration to Smt . Parminder Kaur, in whose case the sale deed has not yet been executed. The appellant has in response to this in the written reply filed stated that TDS will be deducted at the time of full payment and registration as was done in the other two cases as well . The appellant is under a bonafide belief that TDS is to be made at the
time of execution of sale deed payment .
4.In the result, both the appeals of the Revenue are dismissed.
Order pronounced on 4th October, 2021.
Please find attached the enclosed file for the full judgement