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2013 (6) TMI 736 - AT - Income TaxExemption u/s 11 - Held that:- On perusal of trust deed, it is noticed that there is no clause in the trust deed imposing legal obligation on the assessee-trust or its members to hold income of the assessee-trust only for charitable purpose. There is no clause in the trust deed by which the element of private gain is excluded. Similarly, there is no clause in the trust-deed to show that the profits would not be divided or distributed among the members at any time or at the time of dissolution. In the absence of such a clause, it is difficult to treat the assessee-trust as a charitable trust because it is possible for the members of the trust, upon its dissolution, to divide the remaining funds among trustees. In view of the foregoing, it is considered appropriate to set aside the order passed by the Ld Commissioner of Income-tax and restore the matter to his file so that reasonable time is made available to the assessee-trust to amend the trust deed and also enable the Commissioner of Income-tax to take a reasonable view in the matter in conformity with law. The assessee-trust can amend the trust deed within a period of three months from the date of receipt of this order failing which the Commissioner shall be free to pass such order as he considers appropriate in the matter.
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