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2165(Bang)2016 "Exemption u/s 11 The learned CIT(A) erred in fact and in law in directing the A.0 to consider the claim of the assessee u/s 11 of the Act when the matter has not reached finality as the Department has filed further appeal before the Hon'ble Karnataka High Court in the assessee's case for A.Y 2006-07.

Disallowance of Building fund and Infrastructure Development Fund:

The learned CIT(A) erred in fact and in law in directing the A.O to delete the addition made in respect of the building fund and infrastructure development fund.

Unexplained Investments:

The learned CIT(A) erred in fact and in law in holding that Sec.69 cannot be invoked on the investments made by the assessee."

3. Similarly, the grounds raised by the revenue for A. Y. 2011 - 12 in ITA No. 2165/Bang/2016 are as under: -

"Disallowance of Building fund and Infrastructure Development Fund:

2006-07.

Disallowance of Building fund and Infrastructure Development Fund.

(2) The Ld.CIT(A) erred in facts and in law in directing the A.O. to delete the addition made in respect of the building fund and infrastnicture development fund.

Unexplained Investments.

(3) The Ld.CIT(A) erred in facts and in law in holding that sec.69 cannot be invoked on the investments made by the assessee.

Reliance is placed on the assessment order of the A.O. wherein he brought out the reasons for denial of Exemption u/s 11, Disallowance of Building fund and Infrastructure Development Fund and addition on account of Unexplained Investments.

2165(Bang)2016

2. Disallowance Building fund and Infrastructure Development Fund.

The Ld.CIT(A) deleted the addition made on account of above following the decision of his predecessor for A.Ys: 2008-09 and 2009- 10 respectfully following the order of the Hon'ble ITAT(Bang) in ITA Nos.140 & 141/Bang/2010 dated 20.5.2010. However, the A.O.has stated in his assessment order that the action of the A.O.on denial of the same for A.Y:2006-07, has been confirmed by the Ld.CIT(A). For the year under consideration the assessee before claiming exemption u/s 11 has added the building fund and infrastructure development fund to the surplus amount and has arrived at the net surplus fund for application. The findings of the Revenue on this issue for earlier years holds good for this year also as confirmed by the Ld.CIT(A) for A.Y:2006-07. I agree with the findings of the A.O. and the same may be confirmed.