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TMI Blog2020 (9) TMI 1266X X X X Extracts X X X X X X X X Extracts X X X X ..... ever, the first proviso to section 13(1)(c) provides an exception. According to first proviso benefit derived by the trustee or the person mentioned in sub-section (3) shall not debar the trust from availing the benefit of section 11 and 12, if : (i) the trust is created or established prior to the commencement of the Act; and (ii) the benefit extended to the trustee or the person referred to in sub-section (3) is in compliance with the mandatory terms of the trust. In the present case, the assessee has placed on record a copy of the Trust Deed at pages 40 to 48 of the paper book. The Trust Deed is in Marathi language. The English translation of the Trust Deed is at pages 49 to 53 of the paper book. A perusal of the trust deed shows that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... early identified. AO is directed to ascertain the part of property which was in the possession of author of the trust at the time of execution of the trust in the year 1930, qua which mandate has been given for the exclusive use by the author of the trust and his legal heirs. In case the shops under question are part of the property which was in possession of the author of the trust deed at the time of execution, then the assessee clearly falls within the exception as mentioned in proviso to section 13(1)(c)(ii) of the Act. As the issue involved in the year under consideration as well as all the material facts relevant thereto are similar to A.Y. 2010-11 and A.Y. 2011-12, we respectfully follow the order of the Tribunal for A.Y. 2010-11 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 13(1)(c)(ii) second proviso and the intention of the law to deny the exemption after 1970 when the appeal is relating to A.Y.2013-14 and has come to wrong conclusion and set aside the order of the AO. 6. The appellant craves leave to add, alter or amend any or all the grounds of appeal." 2. The assessee in the present case is an educational trust which filed its return of income for the year under consideration on 29.09.2013 declaring total income at Nil after claiming exemption u/s 11 and 12 of the Income Tax Act, 1961. In the assessment completed u/s 143(3) vide an order dated 28.03.2016, benefit of exemption claimed by the assessee u/s 11 and 12 was disallowed by the Assessing Officer following the assessments made in the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12] shall operate so as to exclude from the total income of the previous year of the person in receipt thereof - (a)……………….. (b)……………….. (c) in the case of a trust for charitable or religious purposes or a charitable or religious institution, any income thereof- (i)……………….. (ii) if any part of such income or any property of the trust or the institution (whenever created or established) is during the previous year used or applied, directly or indirectly for the benefit of any person referred to in sub- section (3): Provided that in the case of a trust or institution created or established before the comme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ling the benefit of section 11 and 12, if : (i) the trust is created or established prior to the commencement of the Act; and (ii) the benefit extended to the trustee or the person referred to in sub-section (3) is in compliance with the mandatory terms of the trust. 7. In the present case, the assessee has placed on record a copy of the Trust Deed at pages 40 to 48 of the paper book. The Trust Deed is in Marathi language. The English translation of the Trust Deed is at pages 49 to 53 of the paper book. A perusal of the trust deed shows that the trust was created in the year 1930 i.e. much prior to the enactment of Income Tax Act, 1962. Thus, the first condition to fall within the scope of proviso to section 13(1)(c)(ii) of the Act is sati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the trust in the year 1930, qua which mandate has been given for the exclusive use by the author of the trust and his legal heirs. 9. In case the shops under question are part of the property which was in possession of the author of the trust deed at the time of execution, then the assessee clearly falls within the exception as mentioned in proviso to section 13(1)(c)(ii) of the Act. 10. The assessee has raised an alternate plea by way of additional ground to restrict the addition to the extent of violation made u/s. 13(1)(c)(ii) and 13(2)(b) of the Act. The Co-ordinate Bench of the Tribunal in the case of Sinhgad Technical Education Society Vs. ACIT in ITA No. 320/PUN/2010 for assessment year 2006- 07 decided on 14-12-2016 has held ..... X X X X Extracts X X X X X X X X Extracts X X X X
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