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2022 (8) TMI 733 - AT - Income TaxExemption u/s. 11 - assessee has violated the provisions of section 13(l)(c), 13(2)(b), 13(2)(d) and 13(2)(g) - assessment made on the income of the assessee as AOP - HELD THAT:-CIT(A) following the order passed by the Co-ordinate Bench of this Tribunal in assessee’s own case for the Assessment Year 2009-10 in [2019 (9) TMI 909 - ITAT AHMEDABAD] allowed the appeal filed by the assessee in cancelling the assessment made on the income of the assessee as AOP and directed to grant exemption u/s. 11 & 12 of the Act. CIT(A) has correctly held that the activity of the trust to carried on in accordance with its objects and in the best interest of charity, therefore, the exemption u/s. 11(1)(a) has rightly allowed by the Ld. CIT(A). Similarly, the CIT(A) has clearly held that the Sec. 13((1)(c)(ii) can apply only if any part of the charitable income of the trust has been used or applied for the benefits of the said persons during the previous year - since no portion of the income of the assessee has been applied for said person, therefore, the case of the assessee falls outside the scope of this section - trust is in receipt of income by way of management charges from SCPL and also all of its liabilities have been taken over by the same therefore there is a fact that there is no undue benefits of the use of trust property have been taken by any other persons. Similarly, there is no diversion of income of the trust as per Explanation of Sec. 13(2)(d) and 13(2)(g) of the Act as the trust has been benefitted greatly and its deficit of trust duly reduced to a great extent. Some erroneous presentation of Form No. 10B report does not disentitle the trust for claiming exemption u/s. 11 of the Act. Similarly, the amount of advance in favour of SCPL appearing in the balance sheet was not advance but the reimbursement of the expenses. In the light of the aforesaid facts and circumstances, we are of the considered opinion that the CIT(A) has analyzed the facts correctly and given a judicious finding which does not call for any interference from outside. - Decided against revenue.
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