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2016 (7) TMI 846 - AT - Income TaxAddition u/s 13(1)(b) - nature of donation - disallowance made on the contribution made by the assessee to Little Flower Monastery - Held that:- The assessee registered as charitable trust and its objective should be solely concentrated to the charitable activities only. The charitable Trust carry on those objects which are enlisted in its object clause could spend its income for that purpose only. Though ld.A.R agreed that the assessee is a charitable trust, he made a plea that religious activities is also permitted to be carried on. However, charitable Trust cannot carry on religious activities. As such in our opinion the donation given to activities carried on by the assessee to another Trust, which in turn related to the religious activities, then the assessee is hit by provisions of the section 13(1)(b) of the Act. Being so, the assessee cannot be granted the exemption u/s.11 of the Act, though the assessee donated to religious trust out of income of assessee trust. It needless to say herein that any charity donation out of accumulated funds is not possible after 01.04.2002 as it is hit by sec.11(3) (d) of the Act. However, this is not the case herein before us. We are concerned herein about donation out of current income to another institution with religious objects cannot be considered as application of income for charitable purpose. In other words, the charitable trust cannot donate to the trust which is formed for religious purpose. - Decided against assessee
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