Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (6) TMI 324 - AT - Income TaxCharitable trust - alleged violation of provisions of Section 13(1)(c) r.w.s. 13(2) - assessee, charitable trust registered u/s 12A, one of the group trust managed by Ansal group, having main objects to promote and encourage educational activities - alleged motivation on the part of Ansal Properties and Infrastructure Ltd. to clandestinely divert Trust Funds for its personal use - agreement to sale of plot by APIL to Trust and its consequent cancellation contended to be colorable device by Revenue - Held that:- It is found that there is no change in Trust's objects and agreements to sale of reserved plots of APIL with group educational trust do not carry any element of primary suspicion. On the basis of contemporaneous evidence, it is observed that presumption cannot be drawn that APIL diverted the funds without proper justification for its use. Before the agreements and after the termination of agreements APIL had interest free credit balance with assessee and it has been providing monetary support to trust now and then. Ground of Revenue dismissed. Non collection of rent and interest from APIL - APIL contended that actual payments made were more than rent and interest and proper entries not made in books of trust - Held that:- What is due in books from AIPL was not money lent or advanced to APIL. It was caused by unadjusted balances of interest on debts already discharged prior to 2001. In fact as at 31.3.2006, APIL had a credit balance of more than Rs. 80 lakhs - No merit in the ground of Revenue Advance to Charanjiv Educational Society not registered u/s 12A, meant for establishing an educational institution at Chhattisgarh - Held that:- Assessee in furtherance of its objects formed this charitable society with same objects and trustees and incurred the expenses which are shown as advance to CEC. In our view, even if the same amount was donated to CEC in place of advance, in that eventuality also it would have been allowed as application to objects. Corpus donations received from HCL & Blue bird - benefit u/s 11(1)(d) - Held that:- Since assesse did not violate any provisions of Sec 13, besides it emerges from the record that both the donors confirmed the corpus donations. CIT(A) was right in deleting these additions. Unexplained credit u/s 68 - corpus donation received from S Jagjit Singh, who though first confirmed such donations, later denied some contents - Held that:- Such addition cannot be made u/s 68 as unexplained cash credit as it is held that there is no violation of Sec. 13. Besides, the name of creditor and identity is accepted by AO. The transaction is through DLF pay order which was donated to assessee, on behalf of JS, to resolve a land dispute. Therefore genuineness and creditworthiness is proved. Also, donors may retract statement, but it can not take away the original nature of corpus donation, which has been used accordingly by assessee. Thus legally this addition can not be made u/s 68. In respect of other donations, assessee having discharged the primary onus of leading evidence for identity, donor and his creditworthiness, assessee trust can not be saddled with this addition u/s 68 which is deleted. Apropos development fund charges directly credited to balance sheet - Held that:- Amount has been rightly held by the lower authorities to be the income of the assessee. Depreciation on assets acquired by the application of trust income - dis-allowance - Held that:- In view of decision in case of DIT v Vishwa Jagriti Mission (2012 (4) TMI 289 (HC)), we allow the claim of depreciation on such asset.
|