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2017 (3) TMI 1227 - AT - Income TaxEntitlement for exemption under section 11(2) denied - scope of charitable activities - accumulation of income under section 11(2) is not specific and the deposits made in the bank are not as per provisions of section 11(2)(b) - Held that:- The assessee is a charitable society and carrying various charitable activities, such as, construction of building for the purpose to accommodate HIV / AIDS patients and also accommodation for sisters and training centres. The Assessing Officer has not doubted about the charitable activities carried-out by the assessee-society. We have considered all the details and found that the assessee is carrying charitable activities as per its objects. The assessee made a detailed submission before the Assessing Officer and also before the Commissioner of Income Tax (Appeals). So far as, the accumulation of income, it was submitted before the Assessing Officer that it is for the purpose of construction of Vimala Women Charitable Society and also maintenance of the institution. The explanation of the assessee was simply rejected. Before the Assessing Officer the assessee filed all the details about the construction and also explained that his accumulation is for the purpose of construction and maintenance of the province of the society and also maintenance of sisters etc. The assessee also filed the details of investment of funds. The Commissioner of Income Tax (Appeals) after considering the explanation of the assessee and also considering the details submitted, in respect of the purpose for which funds are accumulated, he gave a specific finding that the assessee society has utilized the funds for charitable purpose and the order of the Assessing Officer was reversed on this count. Insofar as deposits made in the bank account, the Commissioner of Income Tax (Appeals) gave a specific finding that the assessee received funds during the year to utilize the same for specific purposes and it has set apart these funds and invested the same in the fixed deposits during the year itself for the purpose of future utilization. - Decided against revenue
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