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2015 (3) TMI 493 - ITAT PUNEEligibility to the benefit of exemption of Sec. 11 & 12 denied - legitimacy of expenditure on advertisement - payment made to M/s. SBC in which the trustees of the assessee society are the partners - whether the assessee trust has violated the condition of Sec. 13(1)(c) r.w.s. 13(2)(c)? - CIT(A) held that the funds of the society are not applied or used or diverted for the benefit of the person referred to section 13(3) in violation of condition laid down u/s 13(1)(c) & 13(2)(c) - Held that:- The Ld. AR explained with the chart that as per the card rates of the different newspapers which are placed on record, the assessee is more benefited by giving the work to M/s. SBC. He submits that the entire designing and art work required for the advertisement was compiled and prepared by M/s. SBC and no separate payment is made. The assessee has filed the comparative chart showing the benefit received by the assessee society vis-à-vis other client. The assessee has also filed the copies of the Invoices and the Zerox copy of the respective newspapers like Sakal etc. The assessee has also filed the sample bills for the other agencies on which M/s. SBC has not given any discount at all. The assessee has also filed sample bills of M/s. SBC raised on the assessee trust i.e. Bill No. 823 dated 01-09-2007 on which the card rate charges are less than the Newspaper rate as per comparative chart filed by the assessee. The assessee has subsequently demonstrated before us that if the average rate of discount is worked out given to the assessee as compare to card rate which is almost 10%. We also find that M/s. SBC has also done the work for other clients i.e. non-related parties to whom no discount or reduction in the card rates are given. Considering the totality of the evidence before us, we concur with the finding of the Ld. CIT(A) that by giving the advertisement work to M/s. SBC, the assessee trust has not violated the conditions of Sec. 13(1)(c) to deprive to get the benefit of exemption u/s. 11 & 12 of the Act.- Decided against revenue.
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