- (1.) We have heard Shri Shambhu Chopra, learned counsel appearing for the department. Shri Ashish Bansal appears for the respondent-assessee. This Income Tax Appeal filed under Section 260-A of the Income-tax Act arises from an order of Income Tax Appellate Tribunal, Allahabad Bench, Allahabad dated 24.12.2008 relating to the assessment year 2004-05.
(2.) The appeal has been preferred by the department on following substantial questions of law:-- 1. Whether on the facts and in the circumstances of the case, the Tribunal is justified in law in confirming the order of the CIT (A) directing the A.O. to allow exemption u/s. 11 and u/s. 10(23-C)(vi) of the Act, which had been rightly disallowed by the A.O. after appreciation of material on record? 2. Whether on the facts and in the circumstances of the case, the Tribunal is justified in law in deleting the addition made by the AO by holding that the assessee society has not violated the conditions of Section 10(23-C)(vi)/11 of the Act? 3. Whether there was violation of the condition imposed by the CCIT while granting the certificate of exemption u/s. 10(23-C) of the Act as the funds of the assessee society were being utilized for other purposes than for the purposes of the society as such the Tribunal has justified in holding to the contrary.
(3.) Shri Ashish Bansal has explained the office note of DCIT, Range-I, Varanasi dated 27.12.2006. He submits that the DCIT did not allow the continuation of certificate under Section 10(23-C) for the assessment years 2005-06 and 2006-07 on the basis of findings, which have been recorded by the DCIT, Range-I, Varanasi in the assessment order dated 27.12.2006.;