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2011 (4) TMI 625 - AT - Income TaxThe activities carried on by the assessee trust are not genuine. - Assessee trust is not maintaining regular books of account. - assessee- Trust has violated provision of sec. 13(1)(d), which enabled AO to deny benefits of section 11 to assessee on the basis of finding a sum of Rs. 44 lakhs was found and seized in the course of search from the residence of the chairman of the assessee trust. - Capitation fee is that certain entries found in the seized materials relating to the refund of amounts collected from certain students, who were not ultimately admitted in the colleges run by the trust. - Held that:- All these material found in search go to prove that the assessee-trust is running a number of educational institutions recognised by law and by the public and its charitable activities by way of education are bonafide. decided in favour of Assessee. Regarding regular Books of Accounts - Held that:- The assessing authority himself has stated in his order that he has examined the returns of income in the light of the books of account, financial statements and balance-sheets of the assessee-trust. decided in favour of Assessee. Regarding rejection of benefit of Sec. 11 - Held that:- Keeping the money belonging to the assessee-trust is essentially different from spending the money belonging to the assessee-trust. decided in favour of Assessee. Regarding caption Fee. - Held that:- The assessing authority has not conducted any such enquiries either with the students or with the parents of the students or with any other person interested in the activities carried on by the assessee-trust. - Decided in favour of Assessee.
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