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2016 (11) TMI 1416 - AT - Income TaxDeduction under section 11 - charitable nature of assessee - Held that:- Assessing Officer has not seen the fact that the assessee has stopped transaction during the assessment year 2012-13 as it got some better deal from Reliance which was tried in previous years also but did not work out. It also shows the intention of the assessee. If the assessee wants to take any undue benefit under the heading of trust then transactions must have been continued in the assessment year 2012-13. On page no.91 and 92 of the paper book, the FPP at the same rate was sold to other blood banks also but this fact was not considered by the Assessing Officer as life of FPP is one year because it is a perishable item and after one year it is of no use. Considering the charitable nature of assessee, Celestial Biologicals Limited has provided unsecured loan to the tune of ₹ 3.43 crores since financial year 2003-04. If we consider the notional interest rate of 12.5% p.a., the interest would have been more than ₹ 2.50 crores till 31.03.2009. However, no interest has been charged by Celestial Biologicals Limited and its promoters are only trying to help the assessee financially. If the promoters were to take any undue advantage, they would have preferred to draw interest from assessee and ask for complete loan repayment. The Assessing Officer has not considered the fact that the Celestial Biologicals Limited has given interest free unsecured loan of ₹ 3.36 crores and closing balance of ₹ 2.26 crores as on 31.03.2009. - Decided in favour of assessee.
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