TaxTMI 
TaxTMI 
2018 (9) TMI 1558
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....er in not allowing exemption u/s.11 & 12 of the Act on the ground that the assessee has violated the provisions of section 13(1)(c) of the Act on account of payment to Adhikar Micro Finance Ltd., and Adhikar Grameen Products Pvt Ltd., and also the assessee has violated the provisions of section 13(1)(d) of the Act by making payment of remuneration to the Secretary and President of the assessee society. 3. We have heard the rival submissions, perused the orders of lower authorities and materials available on record. The assessee is a charitable trust registered under section 12A of the Act on 21.12.1995. For the assessment year 2010-2011 from the ledger account of the assessee, the Assessing Officer observed that a sum of Rs. 1,52,00,000/....
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....48,851/- to M/s. Adhikar Grameen Products ltd. The Assessing Officer observed that Mr N. Amin is the President of the assessee society and also Shri Manmath Kumar Bhanjdeo is the trustee of the assessee society. Both have held shares in the company Adhikar Micro Finance Pvt Ltd. and M/s. Adhikar Grameen Products ltd, thereby violated the provisions of section 13(1(c) of the Act. The assessee has paid remuneration to the following persons: Sr. No. Name Designation Project Designation Purpose Amount (Rs.) 1. Md N Amin President CEO Salary 1,33,800 2. Manmath Ku Bhanjadeo Secretary Proj.Coordinator Salary 1,92,000 3. Subash Chandra Jena Board Member Consultancy 36,5....
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....n brought on record by the lower authorities to show that any provision referred to in section 13(3) of the Act, the trustee had substantial interest in the said company. We find that Hon'ble Allahabad High Court in the case of CIT vs. Kamla Town Trust, 279 ITR 089 (All) has held as under: "For ready reference cls. (a) & (c) of sub-s. (1) of s. 13, cl. (b) of sub-s. (2) of s. 13, cls. (a), (b), (c), (cc) (d), and (e) of sub-s. (3) of s. 13 & cls. (i) & (ii) of Expln. 3 to s. 13 of the Act are reproduced below : "13. (1) Nothing contained in s. 11 or s. 12 shall operate so as to exclude from the total income of the previous year of the person in receipt thereof- (a) any part of the income from the property held und....
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.... case of a trust for religious purposes or a religious institution (whenever created or established) or a trust for charitable purposes or a charitable institution created or established before the commencement of this Act, the provisions of sub-cl. (ii) shall not apply to any use or application, whether directly or indirectly, of any part of such income or any property of the trust or institution for the benefit of any person referred to in sub-s. (3), insofar as such use or application relates to any period before the 1st day of June, 1970; (2) Without prejudice to the generality of the provisions of cl. (c) of sub-s. (1), the income or the property of the trust or institution or any part of such income or property shall, for the....
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....is section, a person shall be deemed to have a substantial interest in a concern,- (i) in a case where the concern is a company, if its shares (not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits) carrying not less than twenty per cent of the voting power are, at any time during the previous year, owned beneficially by such person or partly by such person and partly by one or more of the other persons referred to in sub-s. (3); (ii) in the case of any other concern, if such person is entitled, or such person and one or more of the other persons referred to in sub-s. (3) are entitled in the aggregate, at any time during the previous year, to not less than t....
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....ed by trusts/charitable institutions. The onus lies on the Revenue to bring on record, cogent material/evidence to establish that the trust/charitable institution is hit by the provisions of s. 13 of the Act. In the present case, we find that as held by the Tribunal from the passage reproduced above, the Revenue has miserably failed to bring any material on record to establish that the trust in question fell within the prohibited category enumerated in s. 13 of the Act. In our considered opinion, therefore, the Tribunal was justified in holding that the aforesaid provisions were not attracted. 13. In view of the foregoing discussions, we answer the question referred to us in the affirmative, i.e., in favour of the assessee and agai....