Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (2) TMI 77 - ITAT MUMBAIRegistration of the assessee trust u/s 12AA cancelled - exemption u/s 11 denied - cancellation on the grounds as the registration of the BMW car in the name of the trustee - Held that:- We have observed that the assessee trust had purchased the BMW car for ₹ 32,20,000/- which is registered in the name of Prof. (Retd) Abdulqadir Abdulla Kazi, chairman and trustee of the assessee trust although the said car has been capitalized and reflected in the Balance sheet of the assessee trust and also in the audited accounts. The depreciation on the afore-stated BMW car was also availed by the assessee trust as provided under the Act. The assessee trust has also availed the loan facility from ICICI bank in the name of the assessee trust for which repayments of loan has been made from the asseseee trust bank accounts and ultimately the car has been sold in the subsequent year and sale proceeds were credited in the bank account of the assessee trust. The assessee trust has also submitted before us that there was a mistake inadvertently committed by the staff of the assessee trust in getting the same registered in the name of trustee of the assessee trust while buying the BMW car instead of getting it registered in the name of the assessee trust and it has been stated in the audited accounts for the financial year 2008-09 of assessee trust in ‘Schedule P -Notes forming part of Accounts' The audited accounts for the financial year 2008-09 was signed on 17th September 2009 in which above note was incorporated and signed by the Trustees and the auditors of the assessee Trust. This clearly evidences on the touch stone of preponderance of probabilities that there was a mistake happened at the time of purchase of the BMW car whereby it got registered in the name of the trustee instead of the assesssee trust although it was purchased by the assessee trust and once the mistake was detected, the steps were initiated to correct the mistake and to transfer the motor car in the name of the assessee trust. CIT(A) has rightly allowed the exemption u/s 11 of the Act to the assessee trust by passing a well reasoned order. We find no infirmity in the orders of the CIT(A) and accordingly we uphold the same and hold that the assessee trust is entitled for exemption u/s 11 of the Act - Decided in favour of assessee.
|