2018 (5) TMI 1269

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....R.JUSTICE AKIL KURESHI) 1. Revenue is in appeal against the judgement of the Income Tax Appellate Tribunal dated 14.09.2017 raising following questions for our consideration: "1. Whether on the facts and circumstances of the case, the Appellate Tribunal was justified in allowing the exemption u/s. 11 & 12 of the Act holding that the assessee has not violated provisions of section 13(3)....

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....e, the Appellate Tribunal was justified in allowing impugned development fund of Rs. 32,69,000/- without appreciating the fact that once the provisions of section 13(3) is applicable the benefit of section 11 and 12 can be allowed further? 6. Whether on the facts and circumstances of the case, the Appellate Tribunal was justified in allowing expenditure on donation of Rs. 48,73,831/- with....

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.... payment of such rent would fall foul of section 13(1)(c) of the Act and resultantly, in view of sub-section (3) of section 13, income of the trust would not qualify for exemption. The Assessing Officer therefore, disallowed such exemption for the rest of the income of the trust also. 3. We would first address the question of payment of rent to the trustees or their HUF. Respondent-assessee is ....

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....e leased to the trust for a period of 30 years. The assessee had also produced a valuation report obtained from the government approved valuer. As per this report, the valuation of the NA land was Rs. 9.10 crores and the value of construction would come to Rs. 13.08 crores. Thus, a total amount of valuation of land and building came to Rs. 25.66 crores. It was pointed out that the current fair mar....