Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (7) TMI 748 - AT - Income TaxBenefit of exemption u/s. 11 denied - assessee had given gifts to another Trust under the name of M/s. PMR Bangaru Subbammal Educational Trust - dealing with unregistered trust - Held that:- The land had been made available to M/s. PMR Bangaru Subbammal Educational Trust, which is a Trust that does not have registration u/s. 12AA of the Act. It is also an undisputed fact that the assessee trust has given loans, which are interest free to M/s. PMR Bangaru Subbammal Educational Trust, that the objects of the assessee-trust and that of M/s. PMR Bangaru Subbammal Educational Trust are identical, would not make M/s. PMR Bangaru Subbammal Educational Trust as having registration u/s. 12AA of the Act. M/s. PMR Bangaru Subbammal Educational Trust must on its own independent status claim and have the registration u/s. 12AA of the Act. In the absence of such registration, dealing with such an unregistered trust would affect the exemption available to the assessee. Where violation of sub-section (2) of section 13 takes place the benefit, directly or indirectly, to any person referred to sub-section(3) of Section 13, then the First provisions of section 13(1) clearly states that nothing contained in section 11 or section 12 shall operate so as to exclude from the total income of the previous year of the person in receipt thereof, which clearly shows that provisions of the section-11 and section-12 are no more available in such cases. Assessing Officer was right in denying the benefit of section-11 in respect of the income of assessee as there has been violation of the provisions of the sections 13(1)(c) and 13(1)(d) read with section 13(2) of the Act. In the circumstances, the order of the CIT(Appeals) on this issue stands reversed and the order of the ld. Assessing Officer is restored. - Decided in favour of assessee. Issue of depreciation in respect of charitable trust is squarely covered by the decision of the Apex Court in the case of Rajasthan & Gujarati Charitable Foundation Poona [2017 (12) TMI 1067 - SUPREME COURT], the ld. Assessing Officer is directed to allow the assessee’s claim of depreciation.
|