2016 (1) TMI 709

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....s a public charitable trust constituted by a trust deed dated 28.06.1989. It was registered under section 12AA of the Income Tax Act, 1961 ["Act" in short]. The assessee trust filed its return declaring "NIL" income. The return was processed under section 143(1) of the Act. The case of the assessee was selected for scrutiny and notice under section 143(2) of the Act was issued. Notice under section 142(1) of the Act was also issued. After due process, the assessment was completed under section 143(3) of the Act by determining the total income at Rs..1,44,40,660/-. 3. During the course of assessment proceedings, the Assessing Officer has observed that the assessee has debited Rs..25,00,000/- and Rs..20,00,000/- as sports fund and building....

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....st free. Accordingly, the Assessing Officer denied exemption under section 11 of the Act and computed the income at Rs..1,44,40,661/- under section 143(3) of the Act. 4. The assessee carried the matter in appeal before the ld. CIT(A). After considering the detailed written submissions filed by the assessee and also considering the facts of the case, the ld. CIT(A) allowed the appeal of the assessee. 5. Aggrieved, the Revenue is in appeal before the Tribunal and the ld. DR strongly relied on the order passed by the Assessing Officer. 6. On the other hand, the ld. Counsel for the assessee has strongly supported the order passed by the ld. CIT(A). 7. We have heard both sides, perused the materials on record and gone through the ord....

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....Act." 8. After considering the written submissions filed by the assessee and carefully considering the balance sheets, the ld. CIT(A) has observed that the assessee is liable for Rs..1,30,724/- to the Social Forum Kuris and there is no investment on the asset side of the balance sheet as on 31.03.2010. Further in the receipts and payments account as on 31.03.2010 also the payments were made to social form chit account which is nothing but repayments. Therefore, the ld. CIT(A) has held that the assessee has not made any investment in violation of section 11(5) r.w.s. section 13(1)(d) of the Act. The ld. DR could not controvert the above findings of the ld. CIT(A). Accordingly, we find no infirmity in the order passed by the ld. CIT(A) and....

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....ion 13(1)(d) read with section 13(1)(c) and 13(3) of the Act as the amount advanced is only a temporary loan transaction between the charitable organizations registered under section 12A(a) of the Act as no benefit was accrued to any of the interested persons in the transaction done. 10. Before us, the ld. Counsel for the assessee has strongly contended on the findings of the Assessing Officer in the assessment order at para 4.2 that the objects of the giver and receiver are not symmetric is not correct. In this connection, he referred to paper book page No. 57, wherein, a letter dated 20.10.2009 of Pavanatma Provincial House has been addressed to the assessee seeking loan of Rs..40 lakhs from the assessee trust is only for the purpose o....