9911796707
TMI Blog2018 (7) TMI 575X X X X Extracts X X X X X X X X Extracts X X X X ..... to the file of ld AO for factual verification - grounds raised in this regard by the revenue are allowed for statistical purposes. Receipt of Government Grants - Held that:- CITA had merely stated that the grants received by the assessee trust had been utilized during the year. We hold that without examining the purpose of grant together with supporting evidences, the nature of grant cannot be understood. We find that there is no finding in this regard in the orders of the lower authorities. Hence we deem it fit and appropriate in the interest of justice and fairplay, to remand this issue to the file of ld AO for factual verification - appeal of the revenue is allowed for statistical purposes. - I.T.A No. 1579/Kol/2016 - - - Dated:- 4-7-2018 - Shri S.S. Godara, JM And Shri M. Balaganesh, AM For the Appellant : Shri Nicholas Murmu, Addl. CIT, Sr. DR For the Respondent : Shri K.M. Roy, FCA ORDER Per M. Balaganesh, AM 1. This appeal by the Revenue arises out of the order of the Learned Commissioner of Income Tax(Appeals)-25, Kolkata [in short the ld CIT(A)] in Appeal No. 134/2015-16 dated 16.05.2016 against the order passed by the JCIT, Range-2, Hooghly [ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me of other organization is not at all permitted by the objectives of the society. This act of the assessee tantamount to alienation of property which violate the principle of exemption granted u/s 12 of the Act. Moreover the other two trusts are not registered u/s 12AA of the Act. The ld AO observed that Mr Manas Dasgupta is the Secretary of assessee society and at the same time he is the President of PCSD and Lok Kendra Trust. Therefore, it is evident that the funds of the assessee society has been utilized for the benefit of its trustee and for this no security and / or any interest was charged by the assessee trust to either to PCSD or Lok Kendra Trust. Hence it is clear violation of provisions of section 13(1)(c )(ii) read with section 13(3)(cc)/ (e) of the Act. Accordingly, the ld AO denied the claim of exemption u/s 11 of the Act of the assessee . The ld AO also observed that the assessee was in receipt of Government Grant of ₹ 10,00,000/- and fund received from Bikash Bhawan to the tune of ₹ 3,00,000/- which had been shown as capital receipt by the assessee trust. The ld AO held that the same are revenue receipts and ought to have been credited in the Income E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y in the field of education. The assessee had made certain payments of ₹ 1,15,44,376/- and had reflected the same in the assets side of its Balance Sheet under the head Loans and Advances as on 31.3.2010 as against ₹ 29,38,821/- as on 31.3.2009. The assessee had explained before the ld AO that the said payments were made to two trusts i.e PCSD and Lok Kendra Trust to enable them to set up their activities. The ld CITA had given a finding that the said payments represent only advances made by the assessee trust to two independent trusts and not donations paid. It is not in dispute that the Mr Manas Dasgupta , Secretary of assessee trust is also the President of other two independent trusts. The ld AO had denied the claim of exemption u/s 11 of the Act of the assessee on the ground of violation of provisions of section 13(1)(c ) read with section 13(2)(a) of the Act in as much as payments have been diverted by the assessee trust for the benefit of interested persons specified in section 13(3) of the Act. Now the short question that arises for our consideration is as to whether the payments made by assessee trust to other two independent trusts would fall under the ambit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n (3) in so far as such use or application relates to any period before the 1st day of June, 1970; (3) The persons referred to in clause (c) of sub-section (1) and sub-section (2) are the following, namely :- (a) the author of the trust or the founder of the institution; (b) any person who has made a substantial contribution to the trust or institution, [that is to say, any person whose total contribution up to the end of the relevant previous year exceeds [fifty] thousand rupees]; (c) where such author, founder or person is a Hindu undivided family, a member of the family; [(cc) any trustee of the trust or manager (by whatever name called) of the institution;] (d) any relative of any such author, founder, person, [member, trustee or manager] as aforesaid; (e) any concern in which any of the persons referred to in clauses (a), (b), (c) [, (cc)] and (d) has a substantial interest. In the instant case, Mr Manas Dasgupta is a trustee of the trust. He is also President of other two independent trusts. From the bare reading of provisions of section 13(3) of the Act, we find that the term concern used in clause (e) o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
