2016 (1) TMI 570

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....e only ground raised in this appeals pertains to allowing exemption u/s 11of the Income Tax Act, 1961 (hereinafter the Act) without appreciating the fact that the assessee is not maintaining separate books of accounts as required under provision of section 11(4A) of the Act. 2. During hearing of this appeal, the ld. DR, Shri Randhir Gupta, advanced arguments, which are identical to the ground raised by contending that the assessee is not maintaining the separate books of accounts and the assessee has violated terms and conditions of trust deed, thus, not eligible for exemption u/s 11 of the Act. 2.1. On the other hand, the ld. counsel for the assessee, Shri K. Gopal, defended the conclusion arrived at in the impugned order by further ....

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....he material available on record. The facts, in brief, are that the assessee is a charitable trust, registered with the Charity Commissioner and also with the department u/s 12A of the Income Tax Act. It is noted that right from the date of inception itself, the assessee trust had been assessed accordingly up to A.Y. 2006-07. The main activity of the assessee trust are for the development of Arts & Sports and is still continuing. The assessee constructed a club on the land provided by BMC in terms of the agreement. The ownership of the land was with the BMC and the structure constructed thereupon was to be handed over to the BMC as per terms of the agreement but the assessee was to carry on and continue the supports activities on the land/pr....

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....ied exemption u/s 11 of the Act. There is no dispute that right from inception, the assessee trust was granted exemption u/s 11 of the Act by the tax authorities. Even, if, the property is under dispute with the BMC authorities, cannot be the sole bases for denying exemption to the assessee. So far as, non-maintenance of separate books of accounts for different sports is concerned, we are in agreement with the finding of the ld. Commissioner of Income Tax (Appeals) that different sports are single activity of sports, therefore, cannot be treated as different activities of the trust. This view find support from the ratio laid down from Hon'ble Apex Court in Thanthi Trust 247 ITR 785 (SC). There is further uncontroverted finding in the impugn....