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2014 (8) TMI 840 - AT - Income TaxExemption u/s 11 denied – Assessee charitable trust and fulfilled all conditions – Settlor of trust himself Buddhist scholar - Held that:- The AO made detailed enquiries and conducted hearings on several dates and made detailed noting in the order sheet entries - the assets acquired by the assessee trust out of the capital outlay must be with the objects of charitable or religious purposes and in such circumstances, even the construction of temple or construction of institute for higher Buddhist studies and research, if accepted, at its on face value, even then the AO could not have denied exemption u/s. 11 of the Act because such an application of income for construction of temple as well as institute for Buddhist higher studies amounted to application of income for charitable purposes as well as religious purposes - the building which the assessee constructed was a temple even then the AO could not have denied exemption u/s 11 of the Act because exemption u/s 11 is permissible to religious as well as charitable trust. Relying upon Commissioner of Income-Tax Versus Rajneesh Foundation [2005 (7) TMI 37 - BOMBAY High Court] - the meaning of words advancement of any other object of general public utility has been subject of discussion and adjudication - the definition of chartable purpose u/s.2(15) of the Act includes the words advancement of any other object of general public utility and the objects claims the activities of the trust are for the advancement of objects like the teachings of Buddha to spread and for that purpose the assessee has claimed application of income towards construction of study and research centre for higher Buddhist study including construction of Buddhist temple - Since inception the assessee trust is pursuing the activities connected or associated with preaching, spreading and disseminating the ideas, ideals and the teachings of Lord Buddha. It is also a temple and assessee trust is performing religious functions and it is established for charitable purposes - The present trust was for the higher Buddhist study and research centre to propagate the Buddha thought and philosophy which would admittedly be an object of general public utility - Be it a construction of temple which is a religious activity or construction of institute for higher Buddhist learning which is for the object of general public utility, both qualifies for exemption u/s 11 of the Act – the exemption u/s. 11 of the Act is allowed to the assessee trust - Decided in favour of Assessee.
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