INCOME TAX OFFICER (E) Vs. CHARANJIV CHARITABLE TRUST

JUDGEMENT

(1.) THESE cross appeals by the revenue and the assessee have been directed against the order of CIT(A) -XIII, New Delhi dated 11.12.2011 in Appeal No. 90/10 -11 for AY 2003 -04.

(2.) THE revenue has raised the following grounds in this appeal: - -

(3.) THE aggrieved assessee carried the matter before the CIT(A) and the first appellate authority upheld the addition of Rs. 75 lakh u/s.68 of the Act. However, the CIT(A) while dealing ground No. 3, 4 and 5 of the assessee in the first appellate proceedings observed that section 11 of the Act requires compulsory application of income for charitable purpose to the extent of 85% of total income and the application by the assessee exceeds 85% of the total income of the assessee, therefore, assessee's claim is justified and allowable. The CIT(A) finally directed the AO to consider the amount of impugned addition as a part of total income applied towards charitable objects. Now, the aggrieved revenue is before this Tribunal in this second appeal with the sole ground as reproduced hereinabove.