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2013 (11) TMI 1492

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..... income for payment or credit to other charitable or religious trusts and institutions - The Finance Act, 2003, has amended the proviso to sub-section (3A) of Section 11 so as to empower the Assessing Officer to allow donation to another trust or institution as application of accumulated income for charitable purposes in the year in which the trust or institution claiming exemption is dissolved – Following assessee's own case for the assessment years 1994-95 - The assessee is registered under Section 12AA as well as 80G(5) and also under Section 10(23C)(iv) - The entire income of the assessee remains non-taxable – The issue is restored for fresh adjudication. - Income Tax Appeal No. - 10 of 2012 - - - Dated:- 21-11-2013 - Hon'ble Rajiv Sh .....

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..... of India under Section 10(23C)(iv). During the assessment years under consideration, the CIT has not revoked the registration under Section 12AA of the Act. During the assessment year under consideration, the assessee has filed its return of income showing NIL income. The return was enclosed with audit report in Form No. 10-B along with Income Expenditure Accounts and Balance-sheet. The AO has noticed that the assessee has utilized, during the assessment year under consideration, a sum of Rs.15,25,000/-, reserve fund which was created for educational purposes in the assessment years 1996-97; 1997-98; and 1998-99. The AO has disallowed the same by observing that it is the violation of Section 11(3)(d) of the Income Tax Act. So, he made t .....

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..... n 12A of the Act and the said Samiti runs the Bakshi Ka Talab Inter College, Lucknow. An amount of Rs.10,25,000/- was paid by cheque to Chandra Bhanu Gupta, Krishi Mahavidhyalaya, Bakshi Ka Talab, Lucknow which is also run by Shiksha Samiti, Lucknow. Thus, both the payments were made for the educational purposes as per the objects of the trust. On the other hand, Sri Alok Mathur, learned standing counsel for the Income Tax Department has justified the impugned order passed by the Tribunal. After hearing both the parties and on perusal of the records, it appears that in the instant case, the amount was accumulated prior to 01.04.2003 though it was utilized during the assessment year under consideration. The above-mentioned amended prov .....

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..... the Direct Tax Laws (Amendment) Act, 1989 income of a fund or institution established for charitable or public religious purposes and notified by the Central Government was exempted from tax under this provision to secure that notified funds or institutions can claim exemption from tax only if the following conditions are fulfilled: (i) the income of the fund or institution is applied wholly or exclusively to the objects for which the fund or institution is established; (ii) the funds are invested in any one of the forms or modes specified in sub-section (5) of Section 11 of the Income-tax Act. Further, as mentioned by this Hon'ble Court in the assessee's case for the assessment years 1994-95 and subsequent assessment years in leadin .....

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