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TMI Blog2024 (8) TMI 746X X X X Extracts X X X X X X X X Extracts X X X X ..... hat car. CIT(A) asked the assessee to furnish the details therein, but, however, no details filed before the first appellate authority and even before us. When we asked for the log book for verification to find out as to whether the said vehicle was used for purpose of assessee s activities, the ld. AR could not produce anything in support of his argument to show that the said vehicle was utilized for the purpose of charitable activities. The submission of the AR that the log book of the vehicle was filed before the AO/CIT(A) is not acceptable, because, a mere statement cannot be taken into consideration without there being any corroborative evidence. Thus, the ground raised by the assessee fails. - Shri S.S. Viswanethra Ravi, Judicial Me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 68,647/- along with insurance of ₹. 1,64,923/-. The Assessing Officer issued show-cause notice to the assessee asking to explain why violation under section 13(1)(c) of the Act should not be quantified and exemption under section 11 12 of the Act should not be denied. The assessee offered explanation which was found by the Assessing Officer as not acceptable. Accordingly, value of the above said car for ₹. 62,68,645/- was charged to tax by denying exemption to that extent. 4. Aggrieved by the order of the Assessing Officer, the assessee preferred an appeal before the ld. CIT(A). We note that same submissions as submitted before the Assessing Officer were reiterated before the ld. CIT(A). The ld. CIT(A) requested the assessee to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the work of the trust and for the purposes for which the trust has been set up. The appellant was asked to file a copy of the resolution passed regarding the luxury vehicle being purchased in the name of the trustee, however, nothing has been filed. 3.2.1 The appellant was asked a pointed question vide notice dated 01/11/2023 as to why these vehicle related expenses should not be clubbed along with the cost of the car and taxed at the maximum marginal rate. The appellant has filed no response to the query, and it is quite clear that it has no explanation to offer in this regard. 3.2.2 The AO has rightly pointed out in the assessment order that, The objects of assessee trusts are carrying out of charitable activities like education, reli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bove mentioned grounds. 6. Heard both the parties and perused the material available on record. We note that the assessee is a trust having objects in carrying out charitable activities like education, relief to poor, etc., which is clear from the assessment order and the impugned order. The case of the Assessing Officer was that the assessee purchased the above said vehicle and registered in the name of the trustee is a clear violation under section 13(1)(c) of the Act. Further, the case of the Assessing Officer was that the income or property of the assessee was diverted in favour of the managing trustee of the assessee and it is a clear violation as per clause (g) of sub-section (2) of section 13 r.w.s. 13(1)(c) of the Act. The submissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the above, it is clear that the car was purchased in the name of the managing trustee for the simple reason that it gave relief by way of lower road/life tax and insurance charges, by contending that road/life tax and insurance charges payable for a new car registered as a commercial vehicle is much more compared to a ownership car. 8. The ld. DR Shri R.V. Aroon Prasad, Addl. CIT drew our attention to the decision of the Hon ble Supreme Court in the case of Biharilal Jaiswal v. CIT (1996) 84 Taxman 236 (SC) and vehemently argued that one arm of the law cannot be utilized to defeat the other arm of law, doing so would be opposed to public policy and bring the law into ridicule. On careful reading of the decision of the Hon ble Supreme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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