Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (8) TMI 428 - AT - Income TaxCharitable institution - withdrawal of benefit u/s 11 on ground that main donor is the Government of Andhra Pradesh and application included expenses worth of ₹ 488,49,585/- towards supply of equipment to Government Sector - Revenue contended application of income or property of the trust for the benefit of any person mentioned in Section 13(3) - Held that:- Definition of "person" u/s 2(31) includes legal authority but not Government itself. See CIT v. Dredging Corporation of India (1988 (3) TMI 29 - ANDHRA PRADESH HIGH COURT). Contention of the Revenue that by giving the machines to the Government Hospitals sec. 13(1)(c) has been violated is not correct not only because State Government is not a person, but also government cannot be said to have benefited by the machines out of the grant given by the government and given to the government Hospitals. The benefit accrues to the General Public. Non-registration under A.P. Charitable & Hindu Religious Institutions and Endowments Act, 1987 - Held that:- Once an institution is approved and granted registration u/s 12A, the department cannot refuse the registration except for violation of sec 11, 12 or 13. Therefore, eligibility for exemption u/s 11 has to be independently considered based on the provisions of the Income tax Act and not anything else. Hence, exemption u/s 11 cannot be denied merely because it is not registered under said Act Validity of reopening of assessment on suspicion based on report of C& AG (Civil) for the Govt. of AP - Held that:- AO cannot reopen the assessment merely on the basis of roving enquiry and since there is no addition with respect to the purchase of equipments the initial reason given for reopening cannot survive and the AO cannot go beyond the reasons given by him for reopening - Decided in favor of assessee
|