TMI Blog2022 (8) TMI 585X X X X Extracts X X X X X X X X Extracts X X X X ..... g as on the Assessment Year applicable to the assessee which were brought by the amendment w.e.f. 01.04.1989 and also the further amendments brought out w.e.f. 01.04.2021. From the concurrent reading of the provisions as on 01.04.1989 and as on 01.04.2021, we find that there was no mandate that the corpus donations have to be necessarily invested or deposited one or more of the forms or modes specified in sub-section (5) maintained specifically for such corpus. Hence, the appeal of the assessee for the instant year is allowable. Decided in favour of assessee. - ITA No. 3558/Del/2015 - - - Dated:- 11-8-2022 - Dr. B. R. R. Kumar, Accountant Member And Sh. Yogesh Kumar US, Judicial Member For the Assessee : Sh. Akhilesh Kumar, Adv. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tc. The Society was granted registration u/s 12AA Income Tax Act, 1961 on 03.02.2000 by the Ld. Commissioner of Income Tax, Ghaziabad. The Society is also approved u/s 80G of the Income Tax Act, 1961. The trust could not establish any institution for want of requisite funds/land/resources except supporting other institutions, and is filing its return regularly. 4. For the current year ITR was filed on 30.08.2010 declaring NIL income. The case was assessed u/s 143(3) of the Income Tax Act, 1961 and addition of Rs. 79,95,000/- is made by invoking provisions of Section 13(1)(d) read with Section 11(5) of the Act on the closing balances of advances of Rs. 79,95,000/- given to M/s Aryabhatt Charitable Trust, M/s A. K. Goel Sons Archana Mi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or cancellation of the deed or the purpose thereof. 10. The AO held that although the assessee is registered u/s 12AA vide order C.No.40(53)/Registration/GZB/99-2000/27784 dated 24.03.2000 by the Ld. Commissioner of Income Tax, Meerut, the trust is not doing any charitable activity. It was held, as per the provisions of Section 13(1)(d) of the Act, the amount given us loan would be treated as taxable. The provisions of Section 13(1)(d) referred by the AO are as under: Circumstances for forfeiture and exception there of Section 13(1)(d) states the circumstances where the exemption to the trust would be forfeited if the funds are invested or deposited after 28.02.1983 otherwise than in any mode as specified under section 11(5) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e end of the previous year in which such asset is acquired or the 31st day of March, 1993, whichever is later; (5) Any funds representing the profits and gains of business, being profits and gains of any previous year relevant to the assessment year commencing on the 1st day of April, 1984 or any subsequent assessment year. 11. The AO held that the society has diverted its fund and invested in violation of 11(5) of IT Act 1961 and the loan given to M/s Aryabhatt Charitable Trust, M/s A. K. Goel Sons Archana Mittal to the tune of Rs.25,00,000/-, Rs.29,95,000/- Rs.25,00,000/- totaling to Rs.79,95,000/- are added to the income of the assessee and held that exemption cannot be provided to the society and whole surplus is taxed at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see which were brought by the amendment w.e.f. 01.04.1989 and also the further amendments brought out w.e.f. 01.04.2021 17. Section 11(1)(d) reads as under: (w.e.f. 01.04.1989)- incomes not includable- income in the form of voluntary contributions made with a specific direction that they shall form part of the corpus of the trust or institution . 18. Section 11(1)(d) reads as under: (w.e.f. 01.04.2021) 11(1) (d) income in the form of voluntary contributions made with a specific direction that they shall form part of the corpus of the trust or institution 64 [,subject to the condition that such voluntary contributions are invested or deposited in one or more of the forms or modes specified in sub-section (5) maintaine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r clause (a) or clause (b),- (i) application for charitable or religious purposes from the corpus as referred to in clause (d) of this sub-section, shall not be treated as application of income for charitable or religious purposes: Provided that the amount not so treated as application, or part thereof, shall be treated as application for charitable or religious purposes in the previous year in which the amount, or part thereof, is invested or deposited back, into one or more of the forms or modes specified in subsection (5) maintained specifically for such corpus, from the income of that year and to the extent of such investment or deposit; and (ii) application for charitable or religious purposes, from any loan or borrowing, shal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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