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2018 (7) TMI 575 - ITAT KOLKATAAssessee trust entitlement for exemption u/s 11 or taxable as an AOP - whether Mr Manas Dasgupta would be entitled for 20% of profits of the said concern as per Explanation 3 to section 13 of the Act so as to state that he is holding substantial interest in the said trust - Held that:- In the instant case, the two trusts i.e PCSD and Lok Kendra Trust are admittedly not registered u/s 12AA of the Act and hence they would be assessed to income tax only in the capacity of ‘Association of Persons’ (AOP) and income would be assessed by applying the regular commercial business principles. Once it is determined, Mr Manas Dasgupta, being the President of those two trusts, would be entitled to share of profits of the said AOP and if the said share is more than 20%, then he would be deemed to be holding substantial interest in that AOPs as per Explanation 3. We find that the details of beneficiaries together with their respective holdings of other two trusts i.e PCSD and Lok Kendra Trust are not available on record - remand this limited aspect of the issue to the file of ld AO for factual verification - grounds raised in this regard by the revenue are allowed for statistical purposes. Receipt of Government Grants - Held that:- CITA had merely stated that the grants received by the assessee trust had been utilized during the year. We hold that without examining the purpose of grant together with supporting evidences, the nature of grant cannot be understood. We find that there is no finding in this regard in the orders of the lower authorities. Hence we deem it fit and appropriate in the interest of justice and fairplay, to remand this issue to the file of ld AO for factual verification - appeal of the revenue is allowed for statistical purposes.
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