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2017 (5) TMI 727 - AT - Income TaxDenial of exemption u/s. 10(23C)(iii)(ad) - assessee is AOP - Held that:- All the Trustee are belonging to the family of Sh. Balwant Rai Satija and the motto of the Trust is to run the Educational school and to earn profit and creating a assets. Therefore, the Trust has not fulfilled the conditions of section 10(23C)(iii)(ad) of I.T. Act and therefore, the Trust is not eligible for exemption u/s 10(23C)(iii)(ad) of the I.T. Act and the same was rightly denied. We further note that the case laws cited by the Ld. Counsel of the assessee are not applicable because the assessee is earning profit year by year and purchasing the property, making FDRs and also earning interest thereon and most importantly, the Assessee is a family Trust and earning profit/benefits and not achieving the objects of the Trust. Accordingly the income of the Trust was assessed as AOP and exemption u/s. 10(23C)(iii)(ad) was rightly not allowed and the addition i.e. surplus of profit shown by the assessee was made to the income of the assessee and exemption u/s. 10(23C)(iii)(ad) which was rightly been confirmed by the Ld. CIT(A), by holding that assessee organization is an educational institution being run for profit and thus ineligible for the exemption as claimed, which does not need any interference on our part, hence, we uphold the order of the Ld. CIT(A) and dismiss the appeal of the assessee. - Decided against assessee.
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