TaxTMI 
TaxTMI 
TaxTMI 
2020 (10) TMI 302
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....2014 on the following substantial questions of law: (i) Whether on the facts and in the circumstances of the case a statutory deduction as provided in Section 24(a) of the Act is not to be reckoned while determining the amount available for application towards charity, for the purpose of levying tax in considering the applicability of Section 11 to a public charitable trust as was done in the assessment order? (ii) Without prejudice and in the alternative whether even in the case of a public charitable trust tax could be levied on a public charitable trust only on its to total income computed after taking into account all deductions including those available under Section 24(a) as well as what is to be excluded under Section 11 of the A....
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....referred to as 'the Tribunal' for short). The Tribunal by an order dated 14.08.2013 allowed the appeal preferred by the revenue. In the aforesaid factual background, the assessee has approached this court. 3. Learned counsel for the assessee has referred to the expression 'income', and 'total income' as defined under Section 2(24) and Section 2(45) of the Act. Our attention has also been invited to Section 139(4A) of the Act as well as Rule 12(g) of the Rules. It is submitted that the Rules, the form and provisions provide for deduction under Section 24 of the Act and therefore, the assessee is entitled to deduction under Section 24(a) of the Act. It is further submitted that under the Act, tax, if any, can be levied only on total ....
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....is an income and only the amount, which is applied for the purposes of the trust is eligible for deduction. It is also argued that wherever Section 11 is applicable, the provisions of Section 14 of the Act are not attracted. It is also submitted that the charging provision should provide for deduction and not the form or the Rules. It is also urged that decision relied upon by the learned counsel for the assessee have no application to the fact situation of the case. 5. We have considered the submissions made by learned counsel for the parties and have perused the record. Before proceeding further, it is apposite to take note of relevant statutory provisions: 2(24) " income" includes- (i) profits and gains; (ii) dividend; (i....
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....use (24) of Section 2, shall, if the total income in respect of which he is assessable as a representative assessee. (the total income for this purpose being computed under this Act without giving effect to the provisions of Sections 11 and 12) exceeds the maximum amount which is not chargeable to income- tax, furnish a return of such income of the Previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be, prescribed and all the provisions of this Act shall, so far as may be, apply as if it were a return required to be furnished under sub-Section (1). 6. The object of Section 11 of the Act is to grant immunity to the income of a charitable trust from income tax. The immuni....