9911796707
TMI Blog2022 (12) TMI 401X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant for consideration: "1. Whether the Tribunal was justified in holding that the Appellant was not entitled to the exemption under Section 10(22) of the Income-tax Act for the relevant assessment years? " 2. Brief facts of the case pleaded in this appeal are, appellant's Trust was registered on February 27, 1992 with the primary object to impart education. It claimed exemption under Section 10(22) and Section 11 of the Income Tax Act, 1961 ('the Act' for short) for the A.Ys. 1995-96 to 1998-99. The Assessing Officer did not allow exemption under Section 10(22) of the Act on the ground that that the assessee-Trust was not solely for the educational purposes, but the trust was making profits. 3. It is the further case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t has got removed all other objects, which are not connected with the education by an appropriate order of the City Civil Court, Bengaluru. The Assessing Officer denied the benefit/exemption under Section 10(22) of the Act mainly on two grounds. Firstly that, the Trust had shown the amounts received as Building and Development fund in the Balance Sheet as capital receipts and subsequently, as an after thought, shifted the same to Income and Expenditure Account in the name of 'Fee collections'. Secondly that, when Trust was asked to produce the details of the addresses of persons contributing to the Building Development Fund, the Trust has replied that the documents relating to A.Y. 1995-96 to 1997-98 were lost and an FIR dated 08.03 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms of money on expensive cars and automobiles. Assessee's contention that the cars were being used for the Trust is not tenable because, assessee had not made available any material to prove its stand. With above main submissions, Shri. Aravind prayed for dismissal of this appeal. 11. We have carefully considered rival contentions and perused the records. 12. The Assessing Officer has denied the benefit under Section 10(22) of the Act for following reasons. Firstly, that the objects of the Trust include commercial activity. Secondly, that Trust Deed provided for payment of Honorarium to the Trustees prohibited under Section 13(2) of the Act. Thirdly, that Trust collects abnormally high fees. Fourthly, for acquiring luxury vehicles. F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... though the assessee had claimed that an FIR was lodged on 08.03.2001, revised Balance Sheet, Income and Expenditure Account were drawn subsequently and filed along with an Audit Certificate, which was not possible without the Books of Accounts. In such circumstances, the Assessing Officer has treated the sum of Rs.13,10,843/- for A.Y. 1995-96 as unexplained Cash credit under Section 68 of the IT Act. 16. Thus, the Stand taken by the assessee that contributions were received only from the students has been rightly rejected by the Assessing Officer. Further, the cash balance of Rs.1.30 Crores at the peak with petty cash being drawn on daily basis fortifies the view taken by the Assessing Officer that money was being utilized for some other p ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
