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2014 (2) TMI 305 - AT - Income TaxWhether the assessee is entitled for exemption u/s 10(22) and 10(23C) - Held that:- Relying upon the decision in Sole Trustee, Loka Shikshana Trust vs Commissioner of Income-tax [1975 (8) TMI 1 - SUPREME Court] - When there is no obligation to utilize the profit arising out of charitable activity for charitable purpose, the income is not entitled for exemption - In assessee's case, the trust is admittedly established for the benefit of children of Mrs. Sula Jayakumar - There is no obligation to use the surplus funds for the charitable purpose, viz. "education" - As per the trust deed, the profit would go to the benefit of children of Mrs. Sula Jayakumar - The assessee is not in existence solely for educational purpose - The assessee trust exists only for profit motive - The issue has been restored for fresh adjudication. Unexplained deposits - Held that:- The assessee trust is not registered u/s 12A of the Act, and not eligible for exemption u/s 11 of the Act - The income of the assessee trust has to be computed on commercial principles - The source of the so-called corpus fund was not explained by the assessee - Ther is no material on record to show that the income was generated in the course of the activity of the assessee trust or it was received from identifiable sources - The issue has been restored for fresh adjudication. Unaccounted income - Held that:- The receipt (monthly fee and term fee) was not recorded in the books of account maintained in the regular course of activities - It was unearthed during the course of search operation - Merely because the time limit for filing the return of income has not expired, the receipt which was not entered in the books of account cannot be excluded - The issue has been restored for fresh adjudication.] Disallowance u/s 40A(3) - Held that:- The certificate of registration produced before CIT(A) was not available before the assessing officer - The genuineness of the trust was not enquired into by the assessing officer, the issue needs to be examined by the assessing officer - The issue has been restored for fresh adjudication. Levy of surcharge u/s 113 - Held that:- Relying upon the decision in Commissioner Of Income-Tax Versus Suresh N. Gupta [2008 (1) TMI 396 - SUPREME Court] - Surcharge can be levied even before the amendment of section 113 of the Act in view of the Finance Act passed by the Parliament in the respective assessment year - The issue has been restored for fresh adjudication. Validity of the block assessment made u/s 158BD - Held that:- The assessee trust is a person other than searched person - The proceedings have been validly been initiated u/s 158BD of the Act - Decided against assessee. Whether assessment order passed after time limit - Held that:- The search took place on 28-05-2002 notice u/s 158BC r.w.s. 158BD was issued on 12-12-2002 and the assessment order was passed on 30-12-2004 - The order passed by the assessing officer is within the period of two years as provided in section 158BE(2)(b) of the Act - Decided against assessee.
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