TMI Blog2022 (12) TMI 376X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of game of golf in India - HELD THAT:- The Bench is of considered opinion that the belief of assessee was erroneous that having spent 85% of the receipts for charitable purposes, the remaining could have been used in any manner whatsoever beyond the scope of Section 11(5) of the Act. Instead, the Bench is of view that Section 11(5) provides for investing or depositing money referred to in clause (b) of sub-section 2 of Section 11, in the identified investments falling in clause (i) to (xii) of Section 11(5) of the Act. The money referred in Clause (b) (ii) is one accumulated or set apart. Meaning thereby that even if 85% of the income referred in clause (a) or sub-clause (b) of sub section 1 of Section 11 read with the explanation 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egistered under section 12A vide registration dated 31.08.1999 and is engaged in organizing golf tournaments in India and abroad for the promotion of game of golf in India. The main objective of the society, inlet-alia, include: - a) To promote the game of golf of India. b) To foster and maintain a high standard of amateur golf in India. c) To arrange for tire conduct Amateur Golf Championship in India and other golf championship in India. d) To promote and arrange golf matches and competitions and India and elsewhere. 2.1 On perusal of Income and expenditure account of the assessee, Ld AO observed that the assessee had made investment of Rs. 1 crores in Mahindra and Mahindra Finance. In response to a query in thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specified under section 11(5).The provisions of section 13(l)(d) read as under: 13, (1) Nothing contained in section 11 or section 22 shall operate so as to exclude from the total income of the precious year of the person in receipt thereof- .. (d) in the case of a trust for charitable or religious purposes or a charitable or religious institution, any income thereof, if for any period during the previous year- (i) any funds of the trust or institution are invested or deposited after the 28th day of February, 1983 otherwise than in any one or more of the forms or modes specified in sub-section (5) of section 11: or (ii) any funds of the trust or institution invested or deposited before the 1st day of March, 1983 ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xemption under section 11 is denied because of violation in terms of section 13(l)(d). Addition of Rs. 30,58,000/- is also upheld. In view of the discussion above, ground of appeal no. 1 is dismissed. 4. Now, the assessee has come before the Tribunal raising following grounds :- 1. The Hon ble CIT(A) 40 erred in law by wrongly invoking section 13(1 )(d) of Income Tax Act and disallowing exemption U/s 11 of the Income Tax Act. 2. The Hon ble CIT (A) erred in law by disallowing the exemption on the basis of investment of 1 crore made by assessee in Mahindra and Mahindra Finance despite of the fact that, the Hon ble CIT(A) duly admitted the assessee as a charitable institution and exemption is allowable under section 11 and 12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant to reproduce certain provision of the Act. Section 13(1)(d) of the Act has been reproduced above in the findings of Ld. CIT(A) and for convenience Section 11(5) is reproduced as below :- (5) The forms and modes of investing or depositing the money referred to in clause (b) of sub-section (2) shall be the following, namely:- 8.1 Further Clause (b) of sub section 2 of Section 11 being relevant is also reproduced as below :- 2 Where eighty- five per cent of the income refer- red to in clause (a) or clause (b) of sub- section (1) read with the Explanation to that sub- section is not applied, or is not deemed to have been applied, to charitable or religious purposes in India during the previous year but is accumulated or set a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section 11(5) of the Act. The money referred in Clause (b) (ii) is one accumulated or set apart. Meaning thereby that even if 85% of the income referred in clause (a) or sub-clause (b) of sub section 1 of Section 11 read with the explanation 2 to that sub section (1) is applied to charitable or religious purposes then to claim exemption on the whole of the income, the accumulated or set apart income has to be deposited or invested in the investments identified in sub section (5) of section 11 of the Act. 10 Aforesaid view of the Bench is fortified by the following findings of Mumbai Bench in M/s. Navajbhai Ratan Tata Trust versus Addl. Director of Income Tax (Exemp.) ITA No. 1301/Mum./2018 decided on 10/3/22 ; 6.6 We have consi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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