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2018 (12) TMI 200 - AT - Income TaxExemption u/s 11 - Application for Registration u/s 12AA denied - only reason for rejecting application u/s 12AA of assessee was on basis of land, on which hospital has been constructed by M/s ASPAM Foundation - as submitted assessee was not having sufficient fund and M/s ASPAM Foundation spent approximately 85% of its receipts which was utilised for construction of hospital building on land owned by assessee - Held that:- ASPAM Foundation claimed exemption in their return of income, whereas, land has been provided by assessee, who has not claimed any expenditure on account of construction activities. Thus in our considered opinion M/s ASPAM Foundation helped in achieving social objective of assessee. Further in respect of land, we observe from paper book that the litigation against 76 people has attained finality vide order dated 12.10.99 passed by Civil Judge (J. Division) Hissar). CIT(E) does not dispute M/s ASPAM Foundation to be charitable trust. Assessee during year under consideration constructed Satsangh Bhavan and Temple which has not been disputed by Ld. CIT(E). These forms part of balance sheet as on 31/03/15 placed. Thus in our considered opinion assessee has achieved its objective of trust through M/s ASPAM Foundation. Merely because a business group and Directors of company are members of society, does not dilute nature of society being a trust. We therefore are of considered opinion that, assessee deserves to be granted registration under section 12 AA of the Act. We accordingly set aside this issue back to Ld.CIT(A) for granting registration to assessee. - Decided in favour of assessee.
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