TMI Blog2002 (2) TMI 357X X X X Extracts X X X X X X X X Extracts X X X X ..... income declaring total income of Rs. 21,737 on 31-5-1995. Since the return was filed beyond the time limit under section 139, the said return was regularized under section 148. In the return of income, the status of the assessee was shown as that of AOP (Trust). 3. During the course of scrutiny, the Assessing Officer observed that the assessee had claimed deduction of Rs. 7,000 under section 80L of the Act in respect of income from interest from Bank. The Assessing Officer observed that the said deduction is not allowable. He further observed that the assessee had incurred expenditure on the objects of the Trust much below 75 per cent of the total income. He further stated that though Form 10A for registration under section 12A was filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orrect status of the assessee should be that of individual as against AOP, tax rate to be applied was that of individual and not of AOP and deduction should be allowed under section 80L. 5. Shri S.K. Rastogi, the ld. DR. relied on the assessment order and contended that the assessee itself had declared the status of AOP and the ld. CIT(A) was not justified in holding that the status should be other than that of A.O.P. At this stage, this Bench directed the assessee to bring on record the Trust Deed, if any, so as to ascertain the correct legal position in that behalf. Accordingly, the Trust Deed and English translation of the same have been placed on record. 6. It appears from the Trust Deed that the Trust was established on 10-10-1974. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall be entitled to be a well-wisher member for which subscription was Re. 1 per month and art individual paving a one-time membership of Rs. 25 or a person who has paid at the rate of Re. 1 per month for a consecutive period of three years shall be a permanent member. The said Trust has been registered under the Bombay Public Trusts Act as a religious trust hearing registration A-706. Application in Form 10A for registration of the Trust under section 12A of the Act was filed on 22-2-1994 which is pending for consideration. On these facts, the assessee's representative Shri Sathe submitted that in view of the decision of the Hon'ble Supreme Court in the case of Deoki Nandan v. Murlidhar AIR 1957 SC 133 the present Trust has Lo be conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ries are not members of a family or a specified individual, then the endowment can only be regarded as public, intended to benefit the general body of worshippers." In view of the above, it was submitted that the status of the assessee had to be taken as that of AOP. He further submitted that in case the assessee was not entitled to deduction under section 11, but if the assessee's income was one derived from property held under the trust wholly for charitable or religious purposes section 164(2) applied and income was assessable as that of AOP. Under Schedule to Finance Act, rates of Income-tax for the AOP were the same as those of individual and, therefore, the assessee even though assessable under the status of AOP was still to be taxe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he part of the trust under section 13(1)(e) or 13(1)(a) of the Act which is not the reason for denying benefits of section 11 in the present case. In view of the above legal position, I hold that section 164(2) applies and the tax is to be calculated on the AOP on the minimum marginal rate. 8. As regards the denial of exemption under section 80L, the decision of the Hon'ble Bombay High Court in the case of Director of Income-tax (Exemption) v. Shardaben Bhagubhai Mafatlal Public Charitable Trust [2001] 247 ITR 1 will apply. In this case, it was held by the Hon'ble Bombay High Court that a public charitable trust was to be assessed as individual for the purpose of section 80L of the Act. In view of the binding decision of the Bombay High C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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