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2015 (3) TMI 315 - AT - Income TaxNon-granting of exemption under section 11(4A) - assessee was registered under section 12A of the I.T. Act. - Held that:- During the year under consideration the surplus income generated by the assessee trust in the super market is to the extent of ₹ 77,45,329 out of which a sum of ₹ 11,96,410 was claimed to be applied for charitable purpose. From the details available on record, it appears, a sum of ₹ 11,50,000 was donated to other institutions. No details is available with regard to application of income to the extent of ₹ 46,410. The fact remains is that the assessee trust has not applied the funds to the object of the trust. In fact, it donated the funds to the other institutions. It is not known whether the other institutions to which donations are made has similar objects like that of assessee. However, section 11(3)(d) introduced by Finance Act, 2002 with effect from 01-04- 2003 clearly says that any income which is credited or paid to a trust or institution is not eligible for exemption and the same has to be treated as income of the assessee. Since the assessee has not applied the surplus funds from the business of super market for charitable purpose as per the object of the trust, the assessee is not eligible for exemption. - Decided against assessee.
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