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2015 (8) TMI 868 - AT - Income TaxDenial of exemption under section 11 - whether the trust has not violated the provisions of section 13(1)(c) by incurring development expenses on the land belonging to the trustees - gift of land - CIT(A) allowed exemption - Held that:- As could be seen from the findings of the Commissioner of Income-tax (Appeals) that the trustees have initially gifted the land to the assessee - trust by HIBBA and which was subsequently transferred to the assessee- trust by way of gift deed dated March 25, 2013. As the land was transferred to the assessee-trust which was orally gifted earlier, the trustees are not benefitted in any way. Therefore, we are of the view that there is no violation under section 13(1)(c) of the Act. We also find from the valuation report that certain extent of land was not even in the name of the trustees. The trustees have purchased this land on April 28, 2011 which fall under the assessment year 2011-12 and this was also gifted to the trust on March 25, 2013. The findings of the Commissioner of Income-tax (Appeals) have not been rebutted by the Revenue with evidences. In the circumstances, we uphold the order of the Commissioner of Income-tax (Appeals) holding that there is no violation of the provisions of section 13(1)(c) of the Act and consequently exemption under section 11 cannot be denied. - Decided in favour of assessee.
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