2016 (2) TMI 35

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the assessee, were not considered by the ld. Commissioner of Income Tax (Appeals) and it should have been treated as additional ground. Reliance was placed upon the decision in the case of CIT vs Institute of Banking (264 ITR 110)(Bom.), CIT vs Maharana of Mebar Charitable Foundaton (164 ITR 439) (Raj.), CIT vs Plot Swetamber Murtipujak Jain Mandal (211 ITR 293)(Guj.) and CIT vs Shimla Chandigarh Diocese Society (318 ITR 96) (P & H). My attention was also invited to the written submission filed before the ld. Commissioner of Income Tax (Appeals) and para-6, page -11 of the impugned order. On the other hand, the ld. DR, defended the conclusion arrived at in the impugned order by contending that no formal ground was raised by the assessee, t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nts to double deduction on account of expenditure out of exempt income. On the other hand, the ld. counsel for the assessee, relied upon the decision from Hon'ble jurisdictional High Court in CIT vs Institute of Banking (264 ITR 110) (Bom.), DIT(E) vs Shri Ville Parele Kelavani Mandal 232 taxman 499 (Bom.)(2015), CIT vs Leelawati Mehata Medical Trust (2015) 229 Taxman 276 (Bom), DIT (E) vs Framjee Cavasjee Institute (2014) 227 taxman 266 (Mag.), DIT(E) vs Indraprashtha Cancer Society (2014) 112 DTR 345 (Del.), CIT vs Siligurhi Regulated Marekt Committee 366 ITR 51 (Cal.) and CIT vs Devi Shankuntla Tharal Charitable foundation 358 ITR 452 (MP). 3.1. I have considered the rival submissions and perused the material available on record. Sectio....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... income must be derived from property held under the trust wholly for charitable or religious purposes and the exclusion of the income is limited to the extent to which such income is applied to such purposes for which the property are held by the trust. 3.3. There is no word of limitation in section 11(1)(a) providing that the income should have been applied for charitable or religious purposes only in the year in which the income had arisen. The word "applied" means "to put to use" or "to turn to use" or "to make use" or "to put to practical use". Having regard to the provisions of section 11, it is clear that the when the income of the trust is used or put to use to meet the expenses incurred for charitable purposes, it is considered to....