TMI Blog2013 (12) TMI 1056X X X X Extracts X X X X X X X X Extracts X X X X ..... through such donation on the opening of WDV in the subsequent years, in our view, does not amount to the claim of double deduction – Decided against Revenue. Donation to other trust – Held that:- According to the CBDT circular No.1132 dated 5.1.1978, the payment of a sum by one charitable trust to another for utilisation by the donee trust towards its charitable objects is proper application of income for charitable purposes in the hands of the done trust and the donor trust will not lose exemption u/s 11 – Following CIT vs. Sarladevi Sarabhai Trust No. 2 [1988 (3) TMI 53 - GUJARAT High Court] - The charitable trust will not lose its exemption u/s 11, if it passes some money to another charitable trust, for utilisation by the donee trus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m of donation. 4. The Appellant craves leave to amend or alter any ground or add a new ground which may be necessary. 3. Apropos Ground No. 1, the relevant facts are that during the year under consideration, the assessee a Charitable Trust received a sum of Rs.15,68,22,593/- out of which Rs. 9,91,43,000/- had been claimed as exempt u/s 11(1)(d) of the Income Tax Act ( Act') being the same as corpus donation. In the assessment framed u/s 143(3), the AO noted that this corpus donation included the donation u/s 35AC and other donations respectively Rs.8 ,10,00,000 /- and Rs.1,81,43,000/-. Further, the AO found that during the previous year, the assessee had spent only Rs.2 ,25,93,844 /- towards vocational training being the amount spent f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11 to the appellant. This ground of appeal is allowed . Aggrieved by the decision, Revenue has raised this ground in the appeal before us. 3.2 Before us, the Ld.DR has relied on the order of the AO in support of the Revenue's case. On the other hand, the Ld.AR has stated that the assessee is a charitable trust registered u/s 12 AA of the Act and is engaged in philanthropic activities of a huge scale and one of its philanthropic endeavours includes the running of vocational training centres . The object of the assessee is not to earn profits rather the trust focuses on the benefit and the upliftment of the poor and needy. 3.3. We have heard both the sides on this issue and perused the material on record. It is observed that the copies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctional High Court in the case of vs. Institute of Banking Personal Selection (2003) (185 CTR 492) . Aggrieved by the decision, the Revenue has raised this ground in the appeal before us. 4.1 We have heard the rival submissions on this ground and perused the material on record. As regards the alleged issue of double deduction, it is pertinent to mention that the donations received by the assessee trust have been exempt from tax as the provisions of sections 11 to 13 of the Act are applicable in those respective years. The claim of depreciation on the assets acquired through such donation on the opening of WDV in the subsequent years, in our view, does not amount to the claim of double deduction and also the ratio in the case of Escorts Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n that according to the CBDT circular No.1132 dated 5.1.1978, the payment of a sum by one charitable trust to another for utilisation by the donee trust towards its charitable objects is proper application of income for charitable purposes in the hands of the done trust and the donor trust will not lose exemption u/s 11 of the Act. According to the decision of the Gujarat High Court in the case of CIT vs. Sarladevi Sarabhai Trust No. 2, the charitable trust will not lose its exemption u/s 11, if it passes some money to another charitable trust, for utilisation by the donee trust towards its charitable purposes. The argument of the Revenue that since the assessee has not produced 80G certificate, it is not eligible to claim the benefit is no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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