TaxTMI 
TaxTMI 
2024 (10) TMI 344
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.... its appeal: "1. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in law and on facts in allowing exemption u/s 11 to the assessee despite the facts that some part of income was applied on objects which are not in compliance to the objects of the assessee. 2. On the facts and in the circumstances of the case. the Ld. CIT(A) has erred in law and on facts in allowing appeal of the assessee without appreciating that the assessee has applied some parts of its income towards non-charitable objects which is violation of condition of granting registration u/s 12A of the I.T. Act. 3. The appellant craves leave to add, to alter or amend any ground of appeal raised above at the time of hearing." ....
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....i) Transaction of trust with specified persons and (iv) Charity expenses. Subsequently, notices under section 143(2) and 142(1) were issued and served on the assessee. In response, the assessee trust has duly complied with by filing the relevant information as called for. 6. During the course of assessment proceedings, the assessee trust was asked to provide the details of funds applied for charitable purposes to claim exemption under section 11 of the Act. 7. The assessee trust vide its reply dated 10.03.2015 explained to the AO that during the relevant assessment year the assessee trust made donations of Rs. 7,31,34,190/-. Party-wise details of such donations were also provided to the AO. 8. In order to verify the abo....
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....jects of the trust. The assessee trust has given donation to AIMC, an organization in accordance with its objects. It also filed Original affidavit of the General Secretary of the AIMC stating that the AIMC had received donation of Rs. 6,60,000/- from the assessee trust which was used in furtherance of objects of assessee trust. Further in the above affidavit, it is also stated that AIMC had received donation from a large section of the society and no part of the receipts are being used for the personal gain of any member. Its activities have also been elaborated in the Affidavit. 12. The AO rejected the above said submissions made by the assessee trust and passed his order dated 11.12.2017 under section 143(3) of the Act by denying the ....
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....bservation: "The fact shows that the appellant has been allowed the benefit of exemption u/s. 11 & 12 of the Act in AY 2013-14 & 2014-15 despite of the fact that it has given donation to All India Milli Council (AIMC) in those years also. Since there is no material change happened in this AY 2015-16. So the AO could not have arrived at a different conclusion. At the most, if he had found that the donations to the entity All India Milli Council is not as per the provision of the law. Then in that case he could have treated the amount of donations of Rs.6,60,000/- as non-application of income for charitable activity and he could have disallowed the amount of Rs.6,60,000/-. The Hon'ble ITAT, Delhi in the case of IILM Foundation (1142/....
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....sing Officer for denial of the exemption u/s 11 of the Act to the assessee trust. and he supported the findings of the Assessing Officer. Further he submitted that the assessee is making the donation to an entity which does not have objects/activities similar to the activities of the assessee, which contravenes the condition on which to earlier registration was granted to the assessee, therefore, he submitted that the findings of the Assessing officer are proper and just. He objected to the relief granted by the Ld CIT(A). 15. On the other hand, the Ld. AR objected to the submissions of the Ld. DR and submitted that the Assessing Officer has not brought on record how the conditions of Section 13 are violated by the activities of the asse....
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....annot be a reason to reject the whole claim of the assessee and the whole functions of the assessee trust are to promote the charitable objects of the trust, therefore, he submitted that the findings of the Ld. CIT(A) are just and proper. 16. Considered the rival submissions and material placed on record. We observe that the assessee trust as a policy to support the trust namely AIMC, according to the assessee trust, AIMC having objects and functions similar to the assessee trust therefore, they are donating every year a sum of Rs. 6.60 lakhs to the AIMC. We observe that the revenue has allowed the same in the assessment years 2013-14 and 2014-15, may be without verification. However this assessment year, on verification, it came to the ....