9911796707
|
Home
Issues involved: Appeal u/s 260A of the Income-tax Act, 1961 for assessment years 1995-96 and 1996-97 regarding exemption u/s 11 of the Act and violation of provisions of section 13(1)(c) and 13(1)(d).
Assessment Year 1995-96: The Commissioner of Income-tax (Appeals) decided in favor of the assessee on all aspects, which was affirmed by the Tribunal. The Tribunal found the assessee entitled to exemption u/s 11 as a registered society under section 12A(a) of the Act, providing services in family planning, welfare, etc. The Tribunal held that payments made were reasonable and for valuable services, rejecting the Assessing Officer's reasons for refusal of exemption. Regarding the loan to Tyagi Foundation, it was found that there was no violation of section 13(5) as Tyagi Foundation was a genuine registered society engaged in charitable activities, and the loan was given within the object of the assessee-society. The expenses on conferences and clinics were deemed part of charitable activities, and the claim of depreciation was allowed. Assessment Year 1996-97: The assessee challenged the reasonableness of salary for this year, which was accepted based on the conclusions for 1995-96. The Tribunal found the conclusions to be factual with no question of law, leading to the dismissal of the appeal. This judgment highlights the importance of factual findings and compliance with relevant provisions in determining eligibility for tax exemptions under the Income-tax Act, 1961.
|
