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2014 (5) TMI 659 - AT - Income TaxRefusal to grant registration u/s 12AA of the Act – Scope of the term charitable purpose u/s 2(15) of the Act – Held that:- The loan grant/ funds provided by the assessee trust are towards achieving the object of establishing the infrastructure projects – creation of infrastructure projects is certainly towards achieving the objects of ‘general public utility’ since by development of such infrastructure projects, the public at large will be benefitted - The funds received by the Trust under the schemes are given as grants/loans with nominal interest to Municipalities and Municipal Corporations for developing infrastructure facilities under the schemes - the activity of the assessee can be considered to be advancing the objects of general public utility without any profit motive – Relying upon COMMISSIONER OF INCOME TAX Versus GUJARAT MARITIME BOARD [2007 (12) TMI 7 - SUPREME COURT OF INDIA] - the objects of the assessee trust as mentioned in the trust deed would certainly make it clear that they are in the nature of ‘general public utility’ since the funding of different projects ultimately are for the benefits of general public - the DIT (E) was not correct in refusing the registration on the aforesaid grounds - the DIT (E) was not justified in not granting registration to the assessee u/s 12AA of the Act – thus, the DIT(E) is directed to grant registration to the assessee trust u/s 12A of the Act. Addition of expenses claimed towards EPF – Held that:- Assessee contended that the amount towards employees contribution to PF was paid to the government account within the due date of filing the return of the AY – Relying upon Commissioner of Income Tax Versus AIMIL Limited and others [2009 (12) TMI 38 - DELHI HIGH COURT] - the expenditure claimed is allowable u/s 43B of the Act – Decided in favour of Assessee. Disallowance of commission payment to agents – Genuineness of payment not proved - Held that:- The assessee cannot be held responsible if the government departments/PSUs failed to provide any information - the AO has taken up an enquiry with the Government departments/PSUs it is the duty of the AO to obtain necessary information from the concerned departments/PSUs by making necessary enquiry with them - the entire issue relating to payment of commission requires examination at the hands of the AO – thus, the matter is remitted back to the AO for fresh adjudication – Decided in favour of Assessee.
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