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TMI Blog2024 (10) TMI 344X X X X Extracts X X X X X X X X Extracts X X X X ..... g the impugned year. After careful consideration of the findings of CIT(A) and relief granted to the assessee trust in the subsequent assessment year, the AO himself has allowed the claim of the assessee u/s 11 and restricted the donation paid to AIMC alone for disallowance. Therefore, there is no merit in denying the benefit u/s 11 of the Act without considering the actual charitable activities of the assessee trust. With the above observations, we do not see any reasons to disturb the findings of the CIT(A). Accordingly, the grounds raised by the revenue are, accordingly, dismissed. - SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER For the Assessee: Shri Ajay Wadhwa, Adv. , Ms. Aayushi Gupta, Adv For the Respondent: Shri Anuj Garg, Sr. DR ORDER PER S.RIFAUR RAHMAN, AM: 1. This appeal has been filed by the Revenue against the order of Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [ Ld. CIT(A) , for short], dated 29/09/2023 for Assessment Year 2015-16. 2. The revenue has raised the following grounds in its appeal: 1. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovide the details of funds applied for charitable purposes to claim exemption under section 11 of the Act. 7. The assessee trust vide its reply dated 10.03.2015 explained to the AO that during the relevant assessment year the assessee trust made donations of Rs. 7,31,34,190/-. Party-wise details of such donations were also provided to the AO. 8. In order to verify the above said donations made by the assessee trust, the AO issued notice u/s 133(6) of the Act and called for the information from the recipient parties to whom the assessee trust made donations. 9. Out of the total donation given by the assessee trust of Rs. 7,31,34,190/-, the AO had only raised questions relating to the donation of Rs. 6,60,000/- made to All India Milli Council (referred to as AIMC ), an organization carrying out similar activities as of the objects of the assessee trust. The main reasons were that the above said AIMC has not obtained any registration u/s 12A, the above facts came to light only on the verification of response to thenotice issued u/s 133(6) of the Act and also they failed to file any return of income in response to above said notice. 10. Subsequently, the AO had asked the assessee to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Revenue Expenditure Rs.10,35,85,885/- Less Depreciation Rs.81,49,685/- Net Expenditure (B) Rs.9,54,36,200/- Assessable Income (A-B) Rs.3,67,44,636/- 13. Aggrieved with the above order, the assessee preferred an appeal before Ld.CIT(A) and submitted a detailed submissions. After considering the detailed submissions of the assessee, the Ld. CIT(A) allowed the appeal filed by the assessee with the following observation: The fact shows that the appellant has been allowed the benefit of exemption u/s. 11 12 of the Act in AY 2013-14 2014-15 despite of the fact that it has given donation to All India Milli Council (AIMC) in those years also. Since there is no material change happened in this AY 2015-16. So the AO could not have arrived at a different conclusion. At the most, if he had found that the donations to the entity All India Milli Council is not as per the provision of the law. Then in that case he could have treated the amount of donations of Rs.6,60,000/- as non-application of income for charitable activity and he could have disallowed the amount of Rs.6,60,000/-. The Hon ble ITAT, Delhi in the case of IILM Foundation (1142/D/2011) has held that: Where there was violation of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee trust was making the donation to AIMC every year to support their activities and submitted that the AIMC may not be registered trust under the Act, however, in principle to support the another trust, assessee is consistently supporting them by giving donation every year. In this regard, he brought to our notice page 38 and 40 of Paper Book in which the assessment order passed u/s 143(3) of the Act for Asst. Year 2013-14 2014-15 respectively were enclosed. He brought to our notice that no addition was proposed by the respective Assessing Officers. Further, he brought to our notice assessment order u/s 143(3) for AY 2017-18 (copy filed at the bar) wherein the claim of the assessee u/s 11 are allowed and donation made to AIMC of Rs.6.6 lakhs alone was disallowed. Further, he brought to our notice page 49 of the Paper Book, in which the General Secretary of AIMC has given an affidavit explaining their activities and utilization of funds received from assessee trust. He also submitted that the assessee also approved the above said donation by passing a resolution of Board of Trustees an Extracts of the Minutes‟ are placed on record. He prayed that the findings of the Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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