2021 (4) TMI 13

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....to section 13 of the Act are only applicable and not other provisions of the Act. 2) The CIT (A) erred in not appreciating the fact that the income U/s 11 (1) refers to the income from property held under the trust and which has to be applied for charitable purposes. The different heads of income under section 14 of the Income Tax Act are not applicable and hence question of allowance of deduction U/s 24 (a) of the Act does not arise while computing income U/s 11. 3) The learned CIT (A) has erred in not following the CBDT Circular in No.5 LXX-6 dated 19.06.1968 wherein it is clarified that the method of computing the income of a charitable trust is different from the computation in case of other assesses. In the case of trust, commerc....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....file of the Tribunal with following observations: "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; (iia) voluntary contributions received by a trust created wholly or partly for charitable or religious purposes or by an institution established wholly or partly for such purposes or by an association or institution referred to in clause (21) or clause (23), or by a fund or trust or institution referred to in sub-clause (iv) or sub- clause (v) or by any university or other educational institution referred to in sub-clause ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nd 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 immunity however, is confined to the extent to which such income is applied to such purposes in India. The exemption will be denied if the income is not actually applied for charitable purposes. This exclusion from immunity, which has been granted by Section 11 of the Act has to be confined to the real income of the trust. The application or accumulation can only be of real income which has actually been received by an assesse....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... CBDT Circular No.3/18 dated 11.07.2018 and this appeal has to be dismissed in limine. The learned DR submitted that this appeal requires to be adjudicated as per the direction of the Hon'ble High Court. 6. We have heard both the parties and perused the material on record. In this case, admittedly, the tax effect involved is less than Rs. 50 lakhs. As per CBDT Circular No.3/18 dated 11.07.2018, the Department is precluded from filing the appeal before the Tribunal unless it is covered by any exceptions provided therein. The learned DR is not able to show that this appeal falls under any exceptions provided in that Circular and also admitted that the tax effect involved in this appeal is less than Rs. 50 lakhs and the Circular is applicable....