9911796707
TMI Blog2020 (6) TMI 243X X X X Extracts X X X X X X X X Extracts X X X X ..... HELD THAT:- Trust Deed of the assessee clearly explained that at the time of winding up what procedure has to be followed of the corpus fund and other funds including movable and immovable property. Sub Clause z of Clause 3 of the Trust Deed explains the process of winding up of the trust wherein it has been provided that at any point of time, the whole of corpus fund and other funds of movable and immovable properties belonging to the trust or the institution run by the trust shall only be transferred to any other public charitable trust or institution having the same aims and object for the public charitable purposes. The assessee at no point of time diverted any funds beyond the scope of its Trust Deed. In fact, the immovable pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ke addition of ₹ 4(L62L430/- to the income of the appellant in respect of long term capital gain alleged to be have been derived on the sale of the land. The basis adopted and the finding recorded is simply based on surmises, conjectures and on hypothetical reasoning s. 2. That on the facts of the case and in law, the Commissioner of Income Tax (Appeal), Ghaziabad erred in not considering the fact that the income derived on the sale of the land and donated to the corpus funds of another trust engaged in the same nature of charitable activities is application of income in view of the provisions of Section 11 (1 )(a) of the Act . 3. That on the facts of the case and in law, the Commissioner of Income Tax (Appeal), Ghaziabad err ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Assessing Officer rejected the said claim and made addition under the head long term capital gain. 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. The Ld. AR submitted that the main object of the assessee trust is incorporated in the Clause 3 of the Trust Deed being to establish, maintain and or run or assist educational institutions and without any prejudice to its generality includes schools, colleges, universities, engineering and technical colleges, medical colleges, primary/higher secondary/secondary schools, pharmacy colleges, dental colleges, graduate/post graduate colleges etc. Further, the Ld. AR submitted that Sub Clause Z of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T Vs. Bagri Foundation 377 ITR 193. 6. The Ld. DR submitted that the assessee trust has donated the fund generated from selling of immovable property instead of transferring immovable property to the other charitable trust which was clearly set out in Clause Z of Para 3 of the Trust Deed. Thus, this itself shows that the assessee has not properly fulfilled the conditions of Section 11(1)(a) of the Act. 7. We have heard both the parties and perused the material available on record. It is pertinent to note that the Trust Deed of the assessee clearly explained that at the time of winding up what procedure has to be followed of the corpus fund and other funds including movable and immovable property. Sub Clause z of Clause 3 of the T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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