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2015 (6) TMI 571 - AT - Income TaxClaim of exemption under section 11 denied - the income earned by the assessee-trust cannot be treated as income from educational activity and hence it has to be treated as business income - assessee let out its premises partly to Jet Airways and others and the income earned therefrom is assessable to tax as business income - Held that:- As long as the trust is imparting education as per the object of the trust, income earned by such trust should be allowed the benefit of exemption under section 11 of the Act. Having regard to the assessee has let out the property for efficient utilisation of its assets with a larger purpose of imparting technical training in the said campus, assessee can be said to be carrying on a charitable activity and income therefrom is exempt from tax. See Dy. DIT(E) -I(2), Mumbai Versus M/s. Samudra Institute of Maritime Studies Trust [2014 (6) TMI 350 - ITAT MUMBAI] Don Bosco Institute without charging any interest for a short period - as per revenue assessee advanced some amount to Don Bosco Institute out of accumulated income set apart for application, in terms of section 11(2) which is in violation of the provisions of section 11(5) - Held that:- The claim of the assessee is not disputed by the learned D.R. Having regard to the circumstances of the case and in the light of the decision in the case of Acme Educational Society [2010 (7) TMI 159 - DELHI HIGH COURT], observed that interest free loan given by the assessee society to another society with identical object cannot be treated as “investment” or “deposit” in which event there is no violation of section 13(1)(d) r.w.s. 11(5) of the Act, we are of the view that the amount advanced by the assessee to Don Bosco Institute is not covered by section 11(5) of the Act and even on that count the claim of exemption could not have been denied to the assessee. Under these circumstances we are of the view that the plea taken before us by the assessee merits acceptance and we direct the AO to grant exemption under section 11 of the Act on the income earned by the assessee, including lease rent, etc. - Decided in favour of assessee.
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