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2015 (1) TMI 1333 - RAJASTHAN HIGH COURTTreatment to assessee Samiti as registered under Section 12-A - the assessee got itself registered under Section 12-A w.e.f. 26.9.2005 - Held that:- Section 11 of the Act of 1961 provides that subject to the provisions of Sections 60 to 63, the income derived from property held under trust wholly for charitable or religious purpose shall not be included in the total income of the previous year of the person in receipt of the income. The Krishi Upaj Mandi Samiti being created under a statute is discharging public charitable functions from the date of its establishment and as such merely the fact of certification at a belated stage will not make it disentitled to have benefit of Section 11 ibid. Looking to peculiar fact that the instant assessee was created under the Rajasthan Agriculture Produce Market Act, 1961 with its statutory duties and liabilities, we are of the view that the Income Tax Appellate Tribunal was justified in holding that the Samiti is a charitable institution from inception and, thus, is entitled for getting its income computed by taking into consideration provisions of Section 11(1) of the Act of 1961, even for the years prior to having certificate under Section 12-A of the Act of 1961.
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