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2012 (8) TMI 553 - AT - Income TaxExemption u/s 80G - refusal on account of expenditure on religious activities, expenditure incurred on jewellery meant for dressing up of Goddess, engagement in business activities - alleged violation of section 13 by giving Trust premises on rent to Dr. Sharma, without charging adequate compensation - Held that:- On objections of DIT (Exemption), assessee contended that temple in question is very small in size and the same was not constructed by the Trust - amount spend on jewellery is less than 5% of the capital of the Trust - Dr Sharma, Chairman of the Trust, is mainly engaged in conducting Memory Classes for the objects of the Trust and is rendering services to the Trust without charging any fee - Services rendered by Dr.Sharma should be deemed as ‘other compensation’ - sale of CDs, medicines, etc. are intrinsically linked connected with the trust activity of teaching and conducting memory classes. In view of aforesaid, matters are set aside to the file of the DIT (Exemption) for fresh examination of the arguments and counter arguments - Decided in favor of assessee for statistical purposes.
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