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Issues:
1. Granting registration to the assessee under section 11(2) of the Income-tax Act, 1961. Analysis: The Income-tax Appellate Tribunal allowed the appeal filed by the assessee and granted registration under section 11(2) of the Income-tax Act, 1961. The Tribunal found that the accumulated amount had been spent by the assessee for purchasing land to set up a school. The Tribunal referred to specific transactions, such as the payment of earnest money and the purchase of the property, supported by relevant documents. This finding led the Tribunal to overturn the decisions of the Assessing Officer and the Commissioner of Income-tax (Appeals), stating that the accumulation was legitimate, and denying registration was unjustified. The Tribunal highlighted that the resolution clarifying the purpose of accumulating income for purchasing land for a school was submitted to the Assessing Officer. Despite the clarification, the Assessing Officer rejected it on the grounds of timing, which the Tribunal deemed unjustified. The Tribunal emphasized that the land purchase was a legitimate means to achieve the trust's objectives, as specified in the memorandum of association. The Tribunal concluded that the accumulation and utilization of the amount were genuine and aligned with the charitable purpose. Considering the utilization of the accumulated amount for a charitable purpose, the Tribunal found it unnecessary to explore the possibility of non-charitable utilization. The Tribunal emphasized that the amount had already been utilized for a charitable purpose, making it academic to question its potential use for non-charitable purposes. Consequently, the Tribunal dismissed the appeal, stating that no substantial question of law arose for consideration in the case.
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