Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (11) TMI 982 - ITAT CHENNAI

2015 (11) TMI 982 - ITAT CHENNAI - [2015] 42 ITR (Trib) 567 (ITAT [Chen]) - Exemption under section 11 denied - According to the Assessing Officer, the assessee had committed an act in violation of section 13(1)(c) - Held that:- In this case, the funds have been transferred from the assessee-trust to the accounts of Mahalakshmi Garments Exports, wherein Shri S. Kunjithapatham is the proprietor. The peak debit balance in the books of account of the trust as on October 8, 2009 was at ₹ 20,98 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ees' benefit, Shri S. Kunjithapatham, who is the proprietor of Mahalakshmi Garments Exports. In our opinion, the expression "person" used in section 13(1)(c)(ii) includes a person, who is the trustee. Thus, the amounts are transferred to Shri S. Kunjithapatham for his benefit and the outstanding balance in the name of Smt. Mahalakshmi Kunjithapatham cannot be clubbed together with funds outstanding from another trustee and each one is a person in terms of section 2(31) of the Act. That being so, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the respondent. ORDER The order of the Bench was delivered by 1. Chandra Poojari (Accountant Member).-This appeal by the Revenue is directed against the order of the Commissioner of Income-tax (Appeals) dated September 2, 2013. 2. The facts of the case are that the Assessing Officer observed that a part of the income of the trust had been used for the benefit of M/s. Mahalakshmi Garments Exports of which the trustee, Shri S. Kunjithapatham was the proprietor. This observation was made by the As .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tax (Appeals). 3. On appeal, the Commissioner of Income-tax (Appeals) observed that the Assessing Officer while observing the peak debit balance as on October 8, 2009 against the trustee, Shri S. Kunjithapatham's proprietorship concern, had failed to appreciate the steady and long standing credit balance of ₹ 20,30,000 in the name of Shri S. Kunjithapatham in the books of account of the trust. Apart from the above credit, wife of Shri S. Kunjithapatham was also having a credit balance .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ts of the three entities in the books of the trust as on April 1, 2009 (i) Shri S. Kunjithapatham, (ii) Mahalakshmi Garment Exports (Prop. Shri S. Kunjithapatham), and (iii) Mahalakshmi Garment Exports in the books of Mahalakshmi Women's College of Arts and Science and arrived at the opening credit balance of ₹ 18,26,520. However, the same consolidated account shows a debit balance for a long period of 9 months from May, 2009 to February, 2010, meaning thereby that the managing trustee .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s) has erred in giving credit once again of the said sum of ₹ 20.30 lakhs without appreciating the fact that the peak debit balance was worked out based on the above opening balance and the same credit balance of ₹ 20.30 lakhs had already been considered by the Assessing Officer. Further he submitted that the Commissioner of Income-tax (Appeals) has erred in holding that Smt. Mahalakshmi, wife of Shri S. Kunjithapatham has also funded ₹ 2 crores to the trust. Hence, if the fund .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

trustee and a distinct person in the eyes of law. Further, he submitted that the Commissioner of Income-tax (Appeals) failed to appreciate that there is no rule as to family members of the trust are to be considered together while invoking the provisions of section 13(1)(c) of the Act. Therefore, netting of the credit balance of Smt. Mahalakshmi, with the debit balance of her husband, Shri S. Kunjithapatham has been erroneously resorted to by the Commissioner of Income-tax (Appeals). According .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hapatham jointly established the charitable trust. Both of them have given interest-free loans to the assessee for starting arts college in the name of Mahalakshmi Women's College of Arts and Science and these funds were transferred from Mahalakshmi Garments Exports. In view of the above, the learned authorised representative submitted that there is no violation of section13(1)(c) of the Act. 6. We have heard both sides and perused the material on record. In this case, the funds have been tr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version