2013 (7) TMI 225

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....69/2012. 2. This appeal is directed against an order dated 09.05.2012 by the Income Tax Appellate Tribunal, Indore Bench, Indore in I.T.A. No.73/Ind/2011 by which an appeal preferred by the assessee against the order of the Commissioner of Income Tax (Appeals) in Appeal No.CIT(A)-I/BPL/IT-244/08-09 was allowed and the order of the assessing officer, modified by the Commissioner of Income Tax (Appeals), was set aside and it was held that the interest free loans lent by the respondents to three societies was exempted as the assessee was registered under Section 12AA of the Income Tax Act, 1961 (hereinafter referred to as 'the Act") and there was no violation of section 13 of the Act. 3. Learned counsel for the appellant submitted that t....

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....12A of the Act. The assessing officer had found that section 13(1) was applicable and sections 11 and 12 were not applicable and the assessee was liable to be assessed accordingly. The assessing officer further directed for initiating penalty proceedings under Section 271(1)(c) of the Act and computed total income of Rs.3,07,41,430/- by an order dated 17.12.2008. 6. Aggrieved by the order of Assessing Officer, the respondent had preferred an appeal before the Commissioner of Income Tax (Appeals). The Commissioner of Income Tax (Appeals) had allowed the appeal in part, however, confirmed the finding of Assessing Officer on the ground that respondent had violated the provisions of Section 13(2) of the Act and, therefore, the assessee was n....

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....istration Act, 1973 with the same object of education. The amount of loan lent to the Society was Rs.69,370/-. The Commissioner of Income Tax (Appeals) had applied the provisions of section 13(3) read with section 13(2)(a) of the Act. For application of the aforesaid provision, share in profit was required to be 20% but there was no such profit in the society. On the aforesaid ground, the Tribunal have found that there was no infringement of the provisions as contained in Section 13(3) of the Act for lending amount of Rs.69,370/- to M/s Pyramid Education Society. On the aforesaid ground, the appeal was allowed and the order of Assessing Officer was set aside. This order is under challenge in this appeal. 8. We have considered the content....