2022 (12) TMI 401

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....our view, the following question of law is relevant for consideration: "1. Whether the Tribunal was justified in holding that the Appellant was not entitled to the exemption under Section 10(22) of the Income-tax Act for the relevant assessment years? " 2. Brief facts of the case pleaded in this appeal are, appellant's Trust was registered on February 27, 1992 with the primary object to impart education. It claimed exemption under Section 10(22) and Section 11 of the Income Tax Act, 1961 ('the Act' for short) for the A.Ys. 1995-96 to 1998-99. The Assessing Officer did not allow exemption under Section 10(22) of the Act on the ground that that the assessee-Trust was not solely for the educational purposes, but the tru....

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.... though the assessee's Trust contained several objects, it has got removed all other objects, which are not connected with the education by an appropriate order of the City Civil Court, Bengaluru. The Assessing Officer denied the benefit/exemption under Section 10(22) of the Act mainly on two grounds. Firstly that, the Trust had shown the amounts received as Building and Development fund in the Balance Sheet as capital receipts and subsequently, as an after thought, shifted the same to Income and Expenditure Account in the name of 'Fee collections'. Secondly that, when Trust was asked to produce the details of the addresses of persons contributing to the Building Development Fund, the Trust has replied that the documents relatin....

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.... the cash balance was being used for some other purpose; • the Trust was spending huge sums of money on expensive cars and automobiles. Assessee's contention that the cars were being used for the Trust is not tenable because, assessee had not made available any material to prove its stand. With above main submissions, Shri. Aravind prayed for dismissal of this appeal. 11. We have carefully considered rival contentions and perused the records. 12. The Assessing Officer has denied the benefit under Section 10(22) of the Act for following reasons. Firstly, that the objects of the Trust include commercial activity. Secondly, that Trust Deed provided for payment of Honorarium to the Trustees prohibited under Section 13(....