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2012 (11) TMI 100 - AT - Income TaxExpenditure for development of surrounding area of the temple - exemption u/s. 11 of the Income Tax Act – Held that:- assessee had shown work in progress of temple at Rs.34,18,480/- towards expenditure of objects of Trust - objects of the Trust are to spread or promote education or learning in all its branches in such a manner as the Trust may think fit - if such Trust is established only for the benefit of the particular religious community or cast, then the provision of Sec. 11 would not be applicable. But the position would be different in a case of Trust or a Institution for religious purpose wherein certain activity termed as charitable activity are also carried out for the benefit of religious community, or caste, clause (b) would have no application in such a case - CIT(A) has confined the exemption excluding the proportionate consultancy charges to the actual cost of the temple - no dispute that surrounding area of the temple is being used by students of all the community and caste for their activities like meditation, yoga lessons, jogging, physical exercise etc - Decided in favor of assessee. Addition on account of retention money - assessee submitted that retention money was the deduction from the interim payment made to a contractor during the pursuance of the contract - amount was deducted as a security for rectification of all the defects pointed out in the course of construction - terms of payment relating to retention money allow the assessee to retain certain amount of payment till a future date, but in no way mitigate the liability of the assessee which arises as soon as the billed amount is admitted by it - in favour of the assessee
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