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2018 (6) TMI 1316 - AT - Income TaxBenefit of Section 11 & 12 - scope of the activities of the trust within the purview of section 2(15) - violation of provision of Section 13 (1) (c) by providing the financial benefit to the persons specified u/s 13(3) - Held that:- The society is an educational institution. It has made payment through credit card of only ₹ 16,19,243/-. AO has considered the entire training expenses of ₹ 99,21,943/- and disallowed 60% of the same as being personal in nature. The society had submitted details of the same before the AO and AO has not been able to point out any particular item of the expenditure which can be considered to be personal in nature. A survey was conducted. Nothing adverse to the assessee emerged during survey on this account. The assessee has given an explanation that the expenses incurred through credit card were meant for the society. It organized various seminars and conferences, through which an eminent faculty was invited. Thus, the assumption of the AO that the expenditure incurred through credit card was personal, is not correct. The CIT(A) has correctly held that the facility of the credit card is a facility like that of a bank. The credit card has been used to incur expenses for and on behalf of the assessee society. We are in agreement with the CIT(A) that the objects of the assessee Society are educational in nature and hence, they fall within the meaning of 'charitable purpose' under Section 2(15) of the Act. The assessee is a Society registered under Section 12A of the Act - the assessee is eligible for exemption under Section 11 - decided in favour of assessee.
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