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2012 (6) TMI 714 - AT - Income TaxRegistered Trust u/s 12AA - exemption u/s 11 & 12 - denial by invoking provisions of Section 13 - assessee-society was running educational institutions on the land in the ownership of wife of Secretary of the Society, given on lease to the assessee society in accordance with a renewable lease deed for a period of 30 years - AO under assumption that as per lease deed, it is seen that after 30 years, if lease is not extended then whatever investment is made in the construction of building on leased land will become the property of the lessor, thereon passing benefit to relative of trustee, which is in violation of Section 13 - Held that:- Assumption of AO that benefit has been conferred upon the relative of the Secretary of the Society in terms of section 13(3) is wholly unwarranted under the law and hypothetical. Said Clause is not, in absolute terms, to put the assessee to disadvantageous situation. Further, no event has happened in the AY under appeal. Whether in such event, the order of the AO would stand as on today because the option can be exercised in the year 2034, which nobody knows as to what would happen in future. Moreover, aassessee was in an advantageous position to get a land at such a lower rate of Rs. 150/- per month and was authorized to carry out the construction on the leased land at its own cost. In addition, the need for the examination of the signatures of witnesses was denied in the absence of any dispute and the fact of passing contradictory order by the AO, by allowing depreciation to the assessee @ 10% i.e. admitting the ownership of the building with the assessee was acknowledged. Order of the CIT (A) was upheld in deleting the addition - Decided in favor of assessee.
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