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2018 (5) TMI 1277 - HC - Income TaxExemption u/s 11 - income of the assessee trust being diverted for non-charitable purposes - Held that:- Appellate Tribunal interpreted the relevant provisions to imply that it is only if a person contributes more than ₹ 50,000/- to the assessee charitable trust and the trust makes some payment to such person, would the transaction fall within the mischief of the relevant provisions. Appellate Tribunal found, as a matter of fact, that the Revenue had not questioned the propriety of the donation or even asserted that the funds of the trust had been diverted by such process. Appellate Tribunal appropriately held that the true intention of Section 13(1)(c) of the Act was to ensure that the funds of an entity granted a special exemption are not misapplied or diverted for use as income. Tribunal’s treatment of the facts, no real legal issue arises since the Tribunal interpreted the appropriate provisions and applied the same in the context of the facts. As to whether the Tribunal was right or wrong is not really a question of law. As to the interpretation of Section 13(1)(c), it does not appear that the view expressed by the Appellate Tribunal is inappropriate. For the reasons indicated above and, particularly, since there was no allegation of the income of the assessee trust being diverted for non-charitable purposes, the Appellate Tribunal’s order does not warrant any interference. No substantial question of law has arisen on the facts.
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