TaxTMI 
TaxTMI 
2023 (1) TMI 850
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....red to as "the Act"). 2. The grounds of appeal raised by the assessee are as follows: "1. On the facts and circumstances of the case as well as law on the subject, the ld. Commissioner of Income Tax (Exemption) has erred in not granting exemption u/s.10(23)(vi) of I.T. Act to the assessee trust. 2. It is therefore prayed that order of ld. Commissioner of Income-tax (Exemption) rejecting exemption application of assessee may please be quashed. 3. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal." 3. Brief facts of the issue in dispute are stated as under. The assessee is an education trust and made an application in Form 56D on 26.09.2018 seeking approval u/s 10(2....
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....tments, alongwith supporting documentary evidences. 4. Please furnish details of benefits given to interested persons. 5. Details of surplus amount, which is carried forward from earlier years in excess of 85% of income and its application with complete details and documentary evidences. 6. Please furnish details of Revenue Expenses for F.Y. 2017-18 (excess of Rs.1 Lakhs). Purpose of expenses Mode of transaction Name & address of the party Amount paid Date of payment Source of payment 1. Please furnish details of TDS made by you during the financial year 2017-18 in the below format. Name and address the deductor TAN of deductor Nature of transaction Amount deducted Amount deposited with date Due date for ....
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....es and not for purposes of profit. As per the trust deed clause 2 and 4 is not exclusively for educational purpose. 1. As per your reply filed in this office you have stated that IDS provisions are not applicable to you. You are requested to explain under which clause your trust has been granted exemption from TDS provisions. I. You have not furnished details of benefits given to interested persons from the income of the trust." 8. In response to the letter of CIT (E), one of the Trustees appeared on 24.09.2019 and filed written submission in respect to the details/explanation called for. The assessee, vide its reply dated 23.09.2019, submitted that clause 2 and 4 of trust deed are framed in respect of co-related, like mandatory act....
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.... before us. 11. Shri Sapnesh Sheth, Learned Counsel for the assessee pleaded that assessee trust was created for the purpose of education and only purpose of the assessee trust is to provide education. However, there are some ancillary objects also such as, promotion of sports, cultural and morale program among the students etc. The Ld. Counsel, took us through the object clause of the trust and stated that none of the object clause of the assessee trust is inconsistent with the main object of the trust. In addition to the main object, subordinate objects are there to promote education such as social, cultural, sports, etc. These activities are necessary for building the bodily strength and character of the students. The Ld. Counsel also e....
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....tion Trust dated 12.03.1998. 1. to carry all types of activities so as to spread and impart education among people and to comment and develop institution, hostels, kindergarten, bal anganvadi etc. for imparting education from preprimary to post-graduation. 2. The trust will undertake activities for overall development of human in the field of social, economic, cultural, sports and General Public Utility. 3. To carry out and support all types of activities for building the character of students and their intellectual and physical development and make them self-reliant and hardworking. 4. the trust will undertake educational and moral activities and also become helpful to those institutions running such activities. 14. From the ....
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....ortation fee and books fees etc. received from students, whereas in the expenses side, we note that there are transportation expenses, educational expenses, expenses to purchase the books, salary payment to teachers and staffs. Therefore, from the above Profit and loss account of the assessee trust it is clearly established that assessee trust is engaged in the educational activities and there is nominal profit which are earned by the assessee while conducting these charitable activities. The assessee-trust does not have profit motive, the small profit generated while carrying out charitable activities, does not mean that assessee is engaged in the commercial activities. Such small profit so earned is again utilised for charitable activitie....