Document Fragment View

Matching Fragments

8. Being aggrieved by the aforenoted order, the assessee filed an appeal before the CIT(A), whereby, vide order dated 29 July 2016, the appeal of the assessee was partly allowed in the terms outlined as under:-

i. The exemption under Section 11 of the Act was allowed, however, an amount of ₹21,66,000/- was sustained out of ₹10,80,98,671/-, applying Section 115 BBC of the Act. ii. The unaccounted receipt of ₹10,38,30,790/- was deleted. The CIT(A) relied on the order passed by the Income Tax Settlement Commission ["ITSC"] for AYs 2008-09 and 2009-10, wherein, the ITSC had taken a view that undisclosed surplus is to be taken as 22% of the expenditure. Accordingly, bearing in mind the total expenditure of ₹24.86 crores for AY 2007-08, the total taxable amount was computed at ₹5,46,92,000/-. It was further held that this amount was required to be set off by the excess of expenditure over receipts disclosed in the accounts, amounting to ₹2,69,34,371/-. The CIT(A) arrived at an undisclosed income of ₹2,77,57,629/- which was thereafter held to be set off against ₹3,00,00,000/- offered to tax by the settlor.