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TMI Blog2013 (8) TMI 1166X X X X Extracts X X X X X X X X Extracts X X X X ..... eturn for the impugned assessment year declaring NIL income after claiming exemption under Section 11 of the Act. During the course of assessment proceedings, it was noted by the Assessing Officer that assessee had shown under the head Deposits a sum of ₹ 18,25,000/- in the name of M/s SPK MAC Charitable Trust. Assessing Officer was of the opinion that this was violation of the investment modes set out under Section 11(5) of the Act. Though the assessee argued that the money was not deposited, but only interest-free loan was given to the said Trust, this was not accepted by the Assessing Officer. As per the A.O., money was lent by the assessee continuously to a party who was not paying any interest. The said party had not given any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that M/s SPK MAC Charitable Trust, though it was a Trust registered under Section 12AA of the Act, would still fall within the concept of a concern . Relying on a decision of Hon'ble Bombay High Court in the case of Champa Charitable Trust v. CIT (214 ITR 764), learned D.R. submitted that a Trust is also a person within the meaning of Section 13 of the Act. According to him, in the said case, one Trust had donated a sum of ₹ 1 lakh to another Trust. Thereafter the latter Trust donated certain sums back to the former Trust. Hon'ble Bombay High Court had held that the contributor-Trust would come within the meaning of Section 13(3)(b) of the Act and recipient-Trust having given donations given back to the contributor- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resident. Assessing Officer had invoked provisions of Section 13(1)(d) read with Section 11(5) of the Act and denied the exemption under Section 11 of the Act. Hon'ble Delhi High Court held that interest-free loan given by the assessee-society to another society, having similar objects and registered under Section 12AA of the Act, did not violate Section 13(1)(d) read with Section 11(5) of the Act, since such loans were neither investments nor deposits. No doubt, the assessee here had mentioned the amounts given to M/s SPK MAC Charitable Trust as deposits in its accounts. Submission of the assessee that it was nothing but a loan given to the said Trust, for the purpose of its educational objects, has not been rebutted by the Revenue. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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