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TMI Blog2022 (8) TMI 733X X X X Extracts X X X X X X X X Extracts X X X X ..... st interest of charity, therefore, the exemption u/s. 11(1)(a) has rightly allowed by the Ld. CIT(A). Similarly, the CIT(A) has clearly held that the Sec. 13((1)(c)(ii) can apply only if any part of the charitable income of the trust has been used or applied for the benefits of the said persons during the previous year - since no portion of the income of the assessee has been applied for said person, therefore, the case of the assessee falls outside the scope of this section - trust is in receipt of income by way of management charges from SCPL and also all of its liabilities have been taken over by the same therefore there is a fact that there is no undue benefits of the use of trust property have been taken by any other persons. Similarly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7.07.2020 whereas the appeals ought to have been filed on or before 23.06.2020 This period falls under COVID-Pandemic situation, thus following Hon ble Supreme Court judgment dated 23.3.2020 in suo moto Writ Petition (Civil) No.3 of 2020, vide Hon ble Supreme Court has extended time limit for filing appeals w.e.f. 15.3.2020. Thus, there is no delay in filing the above appeal. Delay accordingly condoned, and take the appeals of the assessee for adjudication on merit. 2.1. The Grounds of Appeal raised by the Revenue reads as under: 1. Whether, the Ld.CIT(A) has erred in the law and on facts in allowing the exemption u/s. 11 of the Act and directing to recompute the income. 2. The Id. CIT(A) ought to have upheld the order of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred agreement with SCPL, the eligibility conditions for claiming deduction u/s. 11 of the Act, as laid down in sections 13(1)(c)(ii), 13(2)(b), 13(2)(d) and 13(2)(g) of the Act have been violated by the assessee trust. Therefore the income of the Trust is treated as Association of Person AOP and only expenditure incurred was allowed and thereby assessed the total income as Rs. 4,54,85,017/-. 4. Aggrieved against this order, the assessee challenged the same before the Ld. CIT(A)-9, Ahmedabad. The ld. CIT(A) following the order passed by the Co-ordinate Bench of this Tribunal in assessee s own case for the Assessment Year 2009-10 in ITA NO. 1858/Ahd/2013 dated 20.09.2019 allowed the appeal filed by the assessee in cancelling the assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ried on operational management of business of SCPL. The trust was running huge loss, therefore to safe-guard the trust s activities and its assets, the assessee trust has taken a pertinent decision whereby all the liabilities can be discharged adequately and income is assured for its objects at the same it is granting image and immovable property remained unaffected. The Ld. Counsel referring Page 57 of the Paper book [which is agreement between the trust and SCPL] submitted that the object of the transfer to SER Hospital for operational management on mutually agreeable terms. The Ld. Counsel referred the Clause 2 of the agreement which clearly demonstrate that the trust has granted SCPL the operational management rights to the business wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh the findings of the AO as well as CIT(A) part of which are reproduced above in this part of the order. We find that the CIT(A) has arrived on the basic fact that agreement was entered with the company was to secure trust is interest and nor to indulge in the losses and for the purpose of reimburse the expenditure of Kesar Sal Hospital. The object of the transfer agreement with SCPL was to ensure that the hospital is managed professional, and in doing so the purpose of charity is not violated as a reputed hospital of such huge size requires professionally handling. We are also observed that the agreement was not entered into to derive profit from transfer of movable to SCPL but to counter the huge losses incurred in running two big hospit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the CIT(A) has analyzed the facts correctly and given a judicious finding which does not call for any interference from outside. Accordingly, the same is upheld. Consequently, Ground No. (i) to (iii) of the appeal of the Revenue are therefore dismissed. 5. The ld. D.R. Shri V.K. Singh appearing for the Revenue could not contravent the above order passed by the Tribunal and fairly accepted that it is covered for the present Assessment Year also. 6. Considering the submissions of both sides and following Coordinate Bench decision in assessee s own case, the grounds of appeal are hereby rejected and the appeal is hereby dismissed. 7. In the result, the appeal filed by the Revenue is dismissed. Order pronounced in the open cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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