TaxTMI 
TaxTMI 
2015 (12) TMI 1422
X X X X Extracts X X X X
X X X X Extracts X X X X
....d on funds parked in FDS for specific purposes pending utilisation ignoring the provisions of sections 11(1)(a) and 11(1)(b) read with section 11(2) of the I.T.Act, 1961, which are mandatory provisions as held by the Supreme Court in the case of CIT V. Nagpur Hotel Owner's Association (247 ITR 201). 2. Whether, in law and on fact, the ITAT is correct in not appreciating the provisions of section 11(1)(a) and 11(1)(b) which clearly provides that income to be excluded to the extent to which the income so accumulated or set apart is not in excess of 15% of the income subject to option to be exercised in writing as provided in section 11(2) of the I.T.Act, 1961. 3. Whether, in law and on facts, the ITAT is correct in holding that the applic....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... and obtained registration under Section 12-AA of the Act and it was considered as an Institution for charitable purposes. Consequently, assessee income was exempt from Income Tax under Section 11 of the Act. 4. Commissioner of Income Tax exercising power under Section 263 of the Act had come to the conclusion that the order of the Assessing Officer for the year 2008-09 granting exemption to the respondent under Section 11 of the Act was incorrect because the records had disclosed that assessee had not applied 85% of the income towards charitable or religious purposes during the previous years and had accumulated the income. Further, assessee had not submitted Form No.10 and not specified by notice to the assessing authority, the purpose f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....fficer with a direction to re-do the assessment and while doing so to call upon the assessee to file Form No.10. 5. Sri Raviraj, learned Counsel for the appellant strenuously contended that the above facts being incontrovertible, the impugned order passed by the Tribunal is unsustainable in law because the assessee having obtained a registration under Section 12-AA of the Act was not entitled for exemption under Section 11 without complying the statutory requirement. Records being conspicuous to the effect that the assessee had disclosed an income of Rs. 47,66,36,982/- and deployed only Rs. 31,85,50,386/- was liable to pay tax on the difference income of Rs. 8,65,91,048/-. Accordingly, he prayed for allowing this appeal. 6. Per contra, le....
X X X X Extracts X X X X
X X X X Extracts X X X X
....arat Maritime Board is not entitled to the benefit of Section 11 of the 1961 Act as the said Board was not a trust under the Public Trusts Act and, therefore, it was not entitled to claim registration under Section 12-A of the 1961 Act. The Department's case was that the Maritime Board was a statutory authority. It was not a trust. Its business was not held under a trust. Its property was not held under trust. Therefore, the Board was not entitled to be registered as a charitable institution. It was the case of the Department that the Board was performing statutory functions. Development of minor ports in the State of Gujarat cannot be termed as the work undertaken for charitable purposes and in the circumstances the Commissioner reject....
X X X X Extracts X X X X
X X X X Extracts X X X X
....imary purpose and the predominant object are to promote the welfare of the general public the purpose would be charitable purpose. When an object is to promote or protect the interest of a particular trade or industry that object becomes an object of public utility, but not so if it seeks to promote the interest of those who conduct the said trade or industry (CIT v. Andhra Chamber of Commerce [(1965) 55 ITR 722]). If the primary or predominant object of an institution is charitable, any other object which might not be charitable but which is ancillary or incidental to the dominant purpose, would not prevent the institution from being a valid charity (CIT v. Surat Art Silk Cloth Manufacturers' Assn3 ). 14. The present case in our view....