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2020 (9) TMI 904 - AT - Income TaxExemption u/s 11 - Lease transactions - rentals received in respect of the property of the assessee - assessee gave property on rent to another charitable trust - alternative ground taken by the assessee before the Ld. CIT(A) stating that in the event that exemption is not allowed, a sum to be excluded from the taxable income - assessee undertaking any activities in the nature of trade, commerce or business, donations received by the assessee forms part of the corpus of trust - HELD THAT:- We are in agreement with the Ld. CIT(A) that not only on the basis of the rule of consistency but also on the basis of the facts relating to the rent received by the assessee from HLI vis-à-vis the rent under the Delhi Rent Control Act. Without vouchsafing the correctness of the information received from the website and without correlating the information furnished by the property dealers without realities on ground with a specific reference to the property in dispute, it is not open for the Assessing Officer to proceed to make addition, that disturbing the accepted position for about more than two decades. No change of facts and circumstances are brought on record and no independent evidence with a specific relation to the property in dispute is available on record. Merely because the other charitable trust guilty property for accommodation of the person covered under section 13(3) of the Act, such a fact ipso facto does not lead to the addition in the hands of the assessee without first clinching the issue with corroborative piece of evidence. We therefore, hold that there is no justification for addition made by the learned Assessing Officer by invoking the provisions under section 13(2 )( b) Order:- a) Provisions of Section 13(2 )(B) are not applicable to the case of the assessee b) No individual benefit has been derived with regard to the lease transactions c) Alternate ground becomes infructuous d) Corpus donations are in the nature of capital receipts in the instant case and hence doesn’ t constitute a part of income and expenditure statement.
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