9911796707
TMI Blog2010 (7) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... ational society, namely, Nav Bharti Educational Society. It is pertinent to mention that the president of Nav Bharti Educational Society was the brother of the president of the assessee-society. The Assessing Officer held that there was violation of section 13(1)(d) read with section 11(5) of the Act, 1961 and accordingly, he denied benefit of section 11 of the Act, 1961 to the assessee-society. 4. On an appeal filed by the assessee-society, the Commissioner of Income-tax (Appeals) (in short "CIT(A)") deleted the addition and held that there was no violation of section 13(1)(d) read with section 11(5) of the Act, 1961 as both the societies had similar objects. The Commissioner of Income-tax (Appeals) further held that the Assessing Officer had not brought anything on record to show that the transaction of loan was a "deposit" or "investment". 5. The Income-tax Appellate Tribunal dismissed the appeal filed by the Revenue after holding that there was no infringement of section 13(1)(d) read with section 11(5) of the Act, 1961. 6. Ms. Prem Lata Bansal, learned counsel for the Revenue submitted that the Income-tax Appellate Tribunal had erred in law in granting the benefit of sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant clearly indicate the name and address of the donors, amount of donations, cheque Nos. along with date, name and address of the banks, confirmation from the donors, PAN of the donors, their income-tax jurisdiction, copy of their bank account indicating the availability of fund and acknowledgment of IT returns indicating quantum of income. All these evidences clearly prove the genuineness of transactions as well as the identity and the credit-worthiness of the donors. Therefore, it is held that the donations are fully explained and hence the addition of Rs. 32,00,000 is hereby deleted in view of the decision of hon'ble Delhi High Court in case of Keshav Charitable Trust." 9. Mr. Kaushik also pointed out that the Commissioner of Income-tax (Appeals) had similarly deleted addition on account of the alleged accommodation entries in the case of Nav Bharti Educational Society for the next assessment year 2004-05. 10. Having heard both the parties at length, we are of the view that the issue that arises for consideration in the present case is whether advancing of an interest free temporary loan by one society to another society having similar objects is an "investment" or a "dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the date on which such public sector company ceases to be a public sector company ; (B) such other investment or deposit shall be deemed to be an investment made under this clause for the period up to the date on which such investment or deposit becomes repayable by such company ; (viii) deposits with or investment in any bonds issued by a financial corporation which is engaged in providing long-term finance for industrial development in India and which is eligible for deduction under clause (viii) of sub-section (1) of section 36 ; (ix) deposits with or investment in any bonds issued by a public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes and which is eligible for deduction under clause (viii) of sub-section (1) of section 36 ; (ixa) deposits with or investment in any bonds issued by a public company formed and registered in India with the main object of carrying on the business of providing long-term finance for urban infrastructure in India. Explanation.-For the purposes of this clause,- (a) 'long-term finance' means any lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced by the Finance Act, 1983, with effect from April 1, 1983, i.e., for and from the assessment year 1983-84. It prescribes the forms and modes of investing and depositing money referred to in section 11(2)(b). Subsequently, new forms and modes have been added. Section 13(1)(d) as amended by the Finance Act, 1983, provides that the income of any charitable or religious trust or institution will not be entitled to exemption under sections 11 and 12, if certain conditions stipulated therein are not complied with. The word 'deposit' does not cover transaction of loan which can be more appropriately described as direct bailment. The essence of deposit is that there must be a liability to return it to the party by whom or on whose behalf has been made on fulfilment of certain conditions. In the commercial sense, the term is used to indicate the aforesaid transaction as deposit of money for employment, in business, deposits for value to initiate security for deposit of title deeds, similar documents as security for loan, deposit of money bills in a bank in the ordinary course of business of current account and deposits of a sum at interest at a fixed deposit in a bank." 13. In Bai ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
