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TMI Blog2013 (8) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... ities is, therefore, by no means sustainable - Following decision of CIT vs. Kamla Town Trust [2005 (8) TMI 90 - ALLAHABAD High Court] - Decided against Revenue. It has not been mentioned that the funds were misappropriated and were not utilized for the purpose according to the objects of the society, so the registration cannot be cancelled - registration was not cancelled, but the benefit of exemption was not given by the AO, which is not allowable - Following decision of American Hotel and Lodging Association vs. CBDT [2008 (5) TMI 17 - SUPREME COURT OF INDIA] - Decided against Revenue. - Income Tax Appeal No.- 38 of 2008, Income Tax Appeal No. - 137 of 2008, Income Tax Appeal No. - 139 of 2008, Income Tax Appeal No. - 136 of 2008, In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the facts and in the circumstances of the case, the Income Tax Appellate Tribunal has erred in law in allowing the benefit of statutory accumulation of 25% with reference to the gross receipts of the society when no specific resolution for accumulation was made by the assessee. III. Whether on the facts and circumstances of the case the finding of the Income Tax Appellate Tribunal that the assessing officer has failed to bring on record that the case of assessee would fall in section 13(1)(c) of the I.T. Act is perverse. IV. Whether on the facts and circumstances of the case the finding of the Income Tax Appellate Tribunal that the accumulated amount was for the purposes of charitable purpose and hence there is sufficient compliance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the assessee in toto by dismissing the departmental appeals and allowing assessee's appeals. Being aggrieved, the department filed present appeals. With this background, Sri D.D. Chopra, learned counsel for the Department, at the strength of written submission, submits that Sansthan has provided benefit within the meaning of Sections 13(2)(c) and 13(3) as well as Section 13(2)(g) of the Act. The benefit is prominent though the residential premises are provided by Motial Memorial Society, a sister concerned to whom the assessee society has given large chunk of donations inasmuch as 80% of its receipts. Secondly, the expenditure shown to have been incurred by the assessee on charitable object are not so because it has given donations/g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the word "benefit" is provided as under:- 1) Advantage; Privilege; 2) Profit or gain; specially the consideration that moves to the promisee. If the persons in the prohibited category have rendered services then there is no benefit given as such but the expenditure incurred on them would be a compensation for such services. In other words, a benefit would said to have been given to the persons of prohibited category, if they did not, in return, do any thing but only enjoy the infrastructure of the trust or the society. But in the instant case, the concerning persons are providing the services and getting some remuneration, salary, allowances, perquisites which are permissible under the law. He also submits that the requirements of Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clusion of the AO that the bulk of the expenditure was on non-charitable activities is, therefore, by no means sustainable. Further, the beneficiaries i.e. the President and the Treasurer, who got the accommodation were also the office bearer of the Motilal Memorial Society. Thus, if at all there is a case of providing benefit to the persons of prohibited category, then it should be invoked in the case Motilal Memorial Society and certainly not in the case of the assessee. Needless to mention that the Hon'ble Allahabad High Court in the case of CIT vs. Kamla Town Trust, (2005) 279 ITR 89 has held that it has to be shown by the Department that trust has provided land and building or other property of the trust for use of the persons of p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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