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2022 (9) TMI 788 - Income Tax
Exemption u/s 11 - advances given by Assessee as violation of the provisions of section 11(5) - whether gold purchased and contract expenses claimed are furtherance of objects of trust and cannot be treated as investment? - HELD THAT:- After verification of the correspondence by the assessee Trust with Kapila Infratech Pvt. Ltd and Kapila Infratech Pvt. Ltd vide its reply letter that they were facing problem in construction without supportive construction supervisor, disputes with management for construction work and non-availability of labour force. This is not disputed by the Ld. D.R., therefore the finding recorded by the Ld. CIT(A) does not require interference.
Purchase of gold, the assessee filed list of thirty name of the students with each engineering division and with their percentage of mark who were been awarded with gold medals which is available at page no. 41 of the Paper Book. Therefore the factual finding recorded by the Ld. CIT(A) is not being contravented by the ld. D.R. with appropriate records. Therefore the findings of the Ld. CIT(A) on this ground does not require any interference.
Payment made to Chandansingh CIT(A) has observed that the payment is made for construction work on which TDS has been deducted and a fresh confirmation with signature of the contractor and his PAN No. etc. have been submitted and the amount is incurred for the furtherance of the projects of the trust only. Similarly the donation made to various NGO’s trust institutions for which the assessee has proved the genuineness of the payment namely Rs. 1 lakh paid to the Sabarkantha Relief Committee vide Receipt No. 183 dated 09.07.2013, This donation was given at the request of the District Collector for an Govt. Organization, which is as per Clause No. 3 of the Objects of the Trust. Similarly Rs. 25,000/- donation paid to SahyogKushtha Yagna Trust vide Receipt No. 80922 dated 13.08.2013, this donation is given for the purpose for leprosy patients which is as per Clause No. 2 of the Trust Deed. Similarly other donations for education purpose and for providing food to the needy students which are donations, as per Clause No. 1 of the Trust Deed. Therefore it cannot be said the same amount was not applied for the objects of the trust and the same cannot be incurred in violation of Section 11 of the Act. Therefore the grounds raised by the Revenue are devoid of merits.