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TMI Blog2015 (8) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... ndividual and in order to extend his goodwill for the benefit of his wife's endeavour to promote the classical dance, he permitted the Trust to construct a building by utilising the funds of the Trust for the purpose of promoting Bharatanatiyam and other Indian Classical dances. 2. The assessee trust is registered under Section 12 AA of the Income Tax Act, 1961, (hereinafter referred to as the Act) on 23.12.1997. The Assessing Officer, while completing the assessment in the year 2009-2010, denied exemption under Section 11 of the Act, as claimed by the assessee, stating that the income of the assessee Trust fell within the ambit of amended provisions of Section 2 (15) of the Act and that the assessee trust has violated the provisions o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lue of the building so constructed. There is no rent or fee or such other claim by the said individual on the trust for the utilisation of the land on which the building is constructed by the Trust. According to the assessee no income is derived to the individual Sri.A.D.Sathyanarayanan as a Trustee. It is the further contention of the learned counsel for the assessee that the property is also not built for the benefit of the individual Sri.A.D.Sathyanarayanan who happens to be one of the trustee. Therefore, the contention of the Department that there is violation of Section 13 (1) (C) is not justifiable. 6. We are unable to countenance the finding of the Tribunal that the present act would fall under the definition of the term 'Truste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Trust, during the assessment year in issue, constructed the building in question and spent amounts for the entire construction is not in dispute. The fact that the Trust has not paid any amount as rent, licence fee, lease fee or such other fee to the individual Sri.A.D.Sathyarayanan is also not in dispute. The issue that is raised by the Department is that while accepting that the Trust has not paid any rent or any compensation to the trustee for the land used by the assessee trust which belongs to one of the trustees, the income for construction of the building on the land belonging to one of the trustee would amount to income for the benefit of the trustee which will fall under Section 13 (1)(c) of the Act unmindful of the agreement ..... X X X X Extracts X X X X X X X X Extracts X X X X
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