TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 302
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....x (Appeals), National Faceless Appeal centre, Delhi [hereinafter in short "Ld.CIT(A)"], for the A.Y. 2017-18. 2. The present appeal is delayed by 120 days. Along with the appeal, the assessee has filed an application seeking condonation of delay, which is duly supported by the affidavit sworn by the Trustee of the assessee. It is the submission of the assessee that the Trustee of the assessee is aged 91 years and suffered a spinal fracture in December 2021, which required multiple surgeries. Thus, he was bedridden for an extended period. It is submitted that again, on 14.09.2024, the Trustee sustained another fracture to his femur bone, which required an additional six weeks for recovery. To support the above contentions, the assessee ha....
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....er that, based on the facts and circumstances of the case, there was no violation of the provisions of section 13(1)(c) r.w.s. 13(2)(f) of the IT Act, and thus, the denial of the exemption u/s. 11 was unwarranted. 4. The Ld. CIT(A), while rendering an adverse decision, overlooked certain facts i) the trustee of the society had purchased the property at market value, having made payments of Rs. 50 lakhs. In August 2013 and another Rs. 50 lakhs in October 2014. ii) The delay in finalizing the transaction was due to the assessee trust reconsidering the sale, which consequently led to an escalation in the market value. Notably, at the time of the initial payment, the market value as per the SRO was below Rs. 1.67Cr. 5. The Ld.....
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....t. 6. The brief facts pertaining to this issue are that the assessee is a Charitable Trust registered under section 12A of the Act and Section 80G of the Act. For the year under consideration, the assessee filed its return of income on 31.03.2018 declaring a total income of Rs. 2,13,63,753/-. The return filed by the assessee was selected for scrutiny under CASS in order to verify the sale of shares, securities or other property to Specified Persons. Accordingly, statutory notices under section 143(2) and 142(1) of the Act were issued and served on the assessee. During the course of assessment proceedings, from the perusal of the Audit Report in Form 10B, it was observed that the assessee has declared that the property was sold by the ass....
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....] vide order dated 27.12.2019 passed under section 143(3) of the Act held that the assessee has violated the provisions of section 13(1)(c) r.w.s. 13(2)(f) of the Act. Accordingly, the Ld. AO denied the exemption claimed by the assessee under section 11 of the Act and taxed the assessee as an AOP at the Maximum Marginal Rate. The Ld. AO brought to tax the balance sale consideration of Rs. 17,00,000/-, which was not paid by the Trustee to the assessee, and also treated the other miscellaneous income amounting to Rs. 8,56,330/- received by the assessee as its business income, thereby computing the total income of Rs. 25,56,330/-. 7. The Ld. CIT(A), vide impugned order, dismissed the appeal filed by the assessee and upheld the denial of exe....
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....ssessee for the purchase of the aforementioned land. Since the entire consideration paid by the trustee was not recorded in the sale deed executed on 12.05.2016, due to an inadvertent error on the part of the document writer, a rectified sale deed was executed on 31.01.2018, mentioning the total sale consideration of Rs. 1,50,50,000/-. 10. It is evident from the record that the Revenue has not disputed the fact that the payment of Rs. 1,50,50,000/- was received by the assessee from the sale of the aforementioned land. However, as the market value of the said property on the date of registration of the sale deed, i.e., 12.05.2016, was Rs. 1,67,50,000/-, it is the contention of the Revenue that the Assessee-Trust has sold the property for ....
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....on 13 of the Act. 12. Having considered the submissions of both sides and perused the material available on record, we are of the considered view that the basic purpose of section 13(1)(c) r.w.s. 13(2)(f) r.w.s. section 13(3)(cc) of the Act is to prohibit the assessee Trust from transferring the benefit, inter alia, of any property of the Trust to its Trustees by selling the property for a consideration which is less than adequate. As noted in the foregoing paragraphs, until the date of registration of the sale deed on 12.05.2016, which was further rectified on 13.01.2018, the Trustee made a total payment of Rs. 1,50,50,000/- in different tranches from the year 2013 to the date of registration of the sale deed in the year 2016. Further, ....