Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (8) TMI 1819 - AT - Income TaxDenial of grant of exemption u/s 11 - AO held that the donation made to the hospital was not in pursuance to its objects of carrying out religious activities and further was for the benefit of a person which was related to the assessee trust - HELD THAT:- We find are not sufficient to establish this charge. Undisputedly, the amount was paid to the hospital which had also been granted registration u/s 12A - The consistent pleading of the assessee before the AO and the CIT(A), we find, has been that the donation was made was in consonance with its stated religious objects which included service to humanity and humanitarian purpose. In this backdrop, we find, the facts relating to the hospital need further investigation whether it was being run on purely charitable lines with very low fees or no fees being charged from patients or otherwise. Since it is only then it can be said that the donation made by the assessee was in furtherance of its religious objectives of serving humanity. As far the denial of exemption for the reason that by virtue of this donation a related person of the assessee had been benefited, the Ld. DR himself pointed out that there is no finding of fact as to how the hospital was related to the assessee society in terms of the definition so provided u/s 13 (3) - In the absence of this essential fact the applicability of section 13 (1) (c) of the Act cannot be enforced. For the aforesaid reasons we consider it fit to restore the issue back to the CIT(A) to adjudicate the issue afresh after bringing out all relevant facts on record as pointed above and any other facts considered necessary by him for adjudicating the issue at hand. Needless to add the assessee be granted adequate opportunity of being heard and the issue thereafter be decided in accordance with law. - Appeals of the assessee and the Revenue are allowed for statistical purposes.
|