9911796707
TMI Blog2014 (2) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... order there was no reason to interfere as there was no question of law arises which is required to be decided – Decided against Assessee. - ITTA No.613 OF 2013 - - - Dated:- 22-1-2014 - K. J. Sengupta, CJ And Sanjay Kumar,JJ. For the Appellant : Sri C. P. Ramaswami For the Respondent : None appeared JUDGMENT (Per the Hon'ble The Chief Justice Sri Kalyan Jyoti Sengupta) This appeal is sought to be preferred and admitted against the judgment and order dated 23.11.2011 of the learned Tribunal in relation to the assessment year 2001-02 on the following suggested questions of law. "1. On the facts and in the circumstances of the case whether the Tribunal was correct in law in perversely bolding that the investment made in immovable property was not for charitable purpose despite the provisions of Section 11(5) of the Income Tax Act, 1961 treating such investment as application for charitable purpose? 2. Whether the learned ITAT was correct in law in wrongly applying Section 13(1)(bb) in the case of the appellant for assessment year 2001-02 despite the fact that Section 13(1)(bb) was omitted with effect from 01st April 1984 by the Finance Act, 1983 and the obj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpliance as provided under Section 11(2) of the Act. However, the assessee filed Form-10 along with letter dated 12.08.2009. However, the Assessing Officer has not accepted the explanation and refused to grant the relief as prayed for. The Assessing Officer, on fact, noted that as per the statement of computation of total income, the total income was of Rs.82,02,415/- , whereas the application was of Rs.66,32,281/-. Out of the said application, Rs.3,60,388/- had been applied in building the committee hall, while Rs.41,61,881/- were applied in building the commercial complex. So it was found by the Assessing Officer that the application of the aforesaid fund in construction of the building is not at all covered by any of its objects. The Commissioner of Income Tax (Appeals) also upheld the findings of the Assessing Officer. On fact, the Commissioner of Income Tax (Appeals) found that the aforesaid application of fund for construction of the building by the assessee is not the charitable activity. This was also found by the learned Tribunal itself. 4) In the context of the aforesaid, the learned counsel for the appellant would argue that all the authorities should have taken a broa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he trust having been created before the commencement of this Act, to the extent to which such income is applied to such purposes in India; and where any such income is finally set apart for application to such purposes in India, to the extent to which the income so set apart is not in excess of fifteen per cent of the income from such property; (c) income derived from property held under trust- (i) created on or after the 1st day of April, 1952, for a charitable purpose which tends to promote international welfare in which India is interested, to the extent to which such income is applied to such purposes outside India, and (ii) for charitable or religious purposes, created before the 1st day of April, 1952, to the extent to which such income is applied to such purposes outside India" Provided that the Board, by general or special order, has directed in either case that it shall not be included in the total income of the person in receipt of such income; (d) income in the form of voluntary contributions made with a specific direction that they shall form part of the corpus of the trust or institution. Explanation - For the purposes of clauses (a) and (b) - (1) in comput ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Sections 11 and 12, factually it has to be established that income derived from property held under trust wholly for charitable or religious purposes to the extent to which such income is applied to such purposes. If this factual aspect is not established, the registration does not help otherwise. All the authorities below have found that the application of the fund is not made for charitable activity but for construction of the building, which again does not directly reflect the charitable activities. Even on the record, it does not appear that the assessee had intended to apply the future income, which might be derived from the building so constructed. In this context, what the learned Tribunal has noted on fact is required to be reiterated: "In assessee's case major portion of the income of the assessee has been spent towards construction of a commercial complex. As seen from the object clause of the bye-laws construction of commercial complex is not the object of the assessee. Its main object is to establish educational institutions, providing boarding and lodging to the students and working youth, rendering financial help to the deserving students, providing scholarsh ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
