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2018 (1) TMI 282 - ITAT KOLKATAEntitlement to the benefit of tax exemption u/s 11 - proof charitable activities - donation given by assessee trust to a university - Held that:- We note that ld.CIT(A) took a different stand to deny the exemption which was not arising out of the assessment order passed by Assessing Officer under section 143(3)/11 of the Act. The ldCIT(A) held that in case of assessee trust under consideration, the explanation below sub-section (2) of Section 11 are applicable, as the trust made payments to a university approved under section 10(23C)(vi), therefore, there cannot be claim of deduction at both ends, that is, an application by the assessee and as income by the recipient. Neither the stand taken by Assessing Officer nor the stand taken by CIT(A) is justifiable as per the provisions of law. We are of the view that donation given by assessee trust to a university approved under section 10(23C)(vi) is for charitable purpose subject to verification of the basic information which were not available on record, as per Ld. DR, such as:(i) Property from which the rental income of the trust has derived, that is rental agreement and assessee’s Trust entitlement to receive rental income. and (ii) Agreement between Singhania Foundation Education ‘Trust’ and Singhania Foundation Education ‘Samity’ about use of services of service providers namely, International Legal Consultants Ltd. and Law Firm Management Services Ltd( LFMS). Therefore, we are of the view that this issue requires a fresh examination at the end of the Assessing Officer. Therefore, we set aside the order of the ld. CIT(A) and remand the matter back to the file of AO and direct him to examine the basic information like agreement of rental income and agreement between assessee and service provider, as discussed above, and adjudicate the issue afresh - Appeal filed by the assessee allowed for statistical purposes.
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