9911796707
TMI Blog2022 (12) TMI 376X X X X Extracts X X X X X X X X Extracts X X X X ..... 2(3) New Delhi ( herein after referred to as 'Ld. Assessing officer or in short Ld. AO'). 2. The facts in brief are that return of income was filed on 31.10.2015. The case was selected for scrutiny through CASS and notice under section 143(2) was issued on 28.07.2016 which was duly served upon the assessee. The appellant society is registered under section 12A vide registration dated 31.08.1999 and is engaged in organizing golf tournaments in India and abroad for the promotion of game of golf in India. The main objective of the society, inlet-alia, include: - a) To promote the game of golf of India. b) To foster and maintain a high standard of amateur golf in India. c) To arrange for tire conduct Amateur Golf Championship in India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1(5) are applicable only if less than 85% receipts are applied for charitable purposes is not tenable in view of the provisions of section 13(l)(d) which provides for the circumstances where the exemption to the trust would forfeited if the funds are invested or deposited after 28/02/1983 otherwise than in any mode as specified under section 11(5).The provisions of section 13(l)(d) read as under: 13, (1) Nothing contained in section 11 or section 22 shall operate so as to exclude from the total income of the precious year of the person in receipt thereof- ..... (d) in the case of a trust for charitable or religious purposes or a charitable or religious institution, any income thereof, if for any period during the previous year- (i) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... life membership fee which was taken directly to the balance sheet is also upheld. 4.1.9 In view of the discussion above it is held that even though exemption cannot be denied by invoking the proviso to section 2(15) in the case of the appellant as per the discussion in paragraphs to above, exemption under section 11 is denied because of violation in terms of section 13(l)(d). Addition of Rs. 30,58,000/- is also upheld. In view of the discussion above, ground of appeal no. 1 is dismissed. 4. Now, the assessee has come before the Tribunal raising following grounds :- "1. The Hon'ble CIT(A) 40 erred in law by wrongly invoking section 13(1 )(d) of Income Tax Act and disallowing exemption U/s 11 of the Income Tax Act. 2. The Hon'ble C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee will continue to get the benefit u/s 11 of the Act. 7. Revenue contended that there is no limitation of applying 85 % or less for the purpose of applicability of Section 11(5) of the Act. 8. Giving thoughtful consideration issues raised in the grounds it is relevant to reproduce certain provision of the Act. Section 13(1)(d) of the Act has been reproduced above in the findings of Ld. CIT(A) and for convenience Section 11(5) is reproduced as below :- "(5) The forms and modes of investing or depositing the money referred to in clause (b) of sub-section (2) shall be the following, namely:- 8.1 Further Clause (b) of sub section 2 of Section 11 being relevant is also reproduced as below :- "2 Where eighty- five per cent of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scope of Section 11(5) of the Act. 9.1 Instead, the Bench is of view that Section 11(5) provides for investing or depositing money referred to in clause (b) of sub-section 2 of Section 11, in the identified investments falling in clause (i) to (xii) of Section 11(5) of the Act. The money referred in Clause (b) (ii) is one accumulated or set apart. Meaning thereby that even if 85% of the income referred in clause (a) or sub-clause (b) of sub section 1 of Section 11 read with the explanation 2 to that sub section (1) is applied to charitable or religious purposes then to claim exemption on the whole of the income, the accumulated or set apart income has to be deposited or invested in the investments identified in sub section (5) of section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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