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TMI Blog2014 (2) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... rom 01st April 1984 by the Finance Act, 1983 and the objects of the appellant trust have already been approved to be charitable in nature? 2) In this matter, the learned Tribunal has refused to interfere with the judgment and order of the Commissioner of Income Tax (Appeals) by which the Commissioner dismissed the appeal filed by the appellant by confirming the order of the Assessing Officer not allowing exemption under Section 11 of the Income Tax Act, 1961 (for short, "the Act") to the assessee in respect of the income said to have been derived in course of carrying on its business. 3) The brief facts of this case are as follows: On earlier occasion, the Tribunal set aside the order of the Commissioner of Income Tax (Appeals) by order dated 28.11.2007 and restored the matter back to the file of the Assessing Officer on the ground that the Assessing Officer has not given any findings as to whether the money so accumulated or set apart had been deposited in the form or modes specified in Section 11(5) of the Act. On remand, it was submitted by the assessee that it had passed the resolution on 13.06.1992 to the effect that at the end of each year, 75% of the income of the Sangham ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gue that all the authorities should have taken a broader view in the matter as this fund has been utilized for construction of the building and the income therefrom would be utilized for fulfilling the objects. As such, all the authorities should have allowed the exemption. He further argues that once registration under Section 12 of the Act is granted, the authorities below do not have any option but to allow the benefit under Section 11 of the Act. In support of his argument, he has relied upon the following decisions in Commissioner of Income Tax, Bangalore vs. J.H. Gotla1, Commissioner of Income Tax vs. St. George Forana Churth2, Commissioner of Income Tax vs. Hyderabad Race Club Charitable Trust3 and Commissioner of Income Tax vs. Janmabhumi Press Trust4. 5) After going through the impugned judgment and order of the learned Tribunal and considering the argument of the learned counsel for the appellant, we think that the only issue in this matter is whether on the facts and circumstances of the case the authorities below is justified in refusing to grant the benefit under Section 11 of the Act. All the authorities below, on fact, found that the funds received by way of donatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses of clauses (a) and (b) - (1) in computing the fifteen per cent of the income which may be accumulated or set apart, any such voluntary contributions as are referred to in Section 12 shall be deemed to be part of the income; (2) if, in the previous year, the income applied to charitable or religious purposes in India falls short of eighty five per cent of the income derived during that year from property held under trust, or, as the case may be, held under trust in part, by any amount - (i) for the reason that the whole or any part of the income has not been received during that year, or (ii) for any other reason, then - (a) in the case referred to in sub-clause (i), so much of the income applied to such purposes in India during the previous year in which the income is received or during the previous year immediately following as does not exceed the said amount, and (b) in the case referred to in sub-clause (ii) so much of the income applied to such purposes in India during the previous year immediately following the previous year in which the income was derived as does not exceed the said amount, may, at the option of the person in receipt of the income (such option to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ving students, providing scholarships, to establish hospitals and libraries. Even the commercial complex was not used for any of the objects for which the trust was created but had been used to let out to commercial organizations to earn rent. The income generated through that also not fully used for the purpose of attainment of objects of the assessee. Subsequently, income generated by the assesseef was regularly being ploughed back into income generating assets without applying the same for charitable purposes." 8) As far as the Corpus fund is concerned, the Tribunal has found as follows: "The entire donation received in the assessment year under consideration was in the nature of corpus donation. It has been brought on record by the lower authorities that all the 164 letters from the donors in this regard were stereotype letters in Telugu apparently written by a single person. The said letters only stated that the donations had been given as a token of assistance to the programme of the assessee in general. There is no clear mentioning of any desire for making the said donation towards corpus fund. There is no specific direction in writing regarding that the donation has been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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