TaxTMI 
TaxTMI 
2026 (2) TMI 1058
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....61 ("the Act") for Assessment Year 2018-19. Since both appeals arise out of the same order, they are heard together and disposed of by this consolidated order. 2. The assessee has raised following grounds of appeal :- "1. The Ld. CIT(A)-NFAC has erred and was not just and proper on the facts of the case and in law in not allowing the deduction / benefit u/s 11(1) considering the advance given to Trustee as violation of Section 13(1)(c) and 13(1)(d) of the Act. 2. The Ld. CIT(A)-NFAC has erred and was not just and proper on the facts of the case and in law in not adjudicating the Ground No.4 regarding treatment of the difference in receipts as per Form 26AS and the Books as income of the assessee trust, as income." 3.....
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....t of the interest-free advance of Rs. 9,00,000/- given to the trustee, thereby sustaining the denial of exemption under Section 11 of the Act to that extent. 6. Aggrieved by the order of the Ld. CIT(A), both the assessee and the Revenue are in appeal before the Tribunal. The assessee is aggrieved by the action of the Ld. CIT(A) in sustaining the addition and upholding the denial of exemption, whereas the Revenue is aggrieved by the deletion of the addition made on account of alleged short declaration of contractual receipts. 7. We have heard the rival contentions and perused the material available on record. In this case, we find that, the Assessing Officer made addition of Rs. 2,19,43,348/- being the difference between the receipts s....
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....facilities in agriculture, to undertake water recharge activities, to organize programs to irrigate more agriculture with less water and to organize farmer training classes, to provide understanding of drip irrigation system and to motivate maximum farmers to cultivate with water-efficient system with financial assistance from the Central and State Governments, for the development of socially and economically backward people in villages and to strengthen the rural economy animal husbandry and farming businesses,. iv. To establish and operate vocational educational training centers. v. To provide medical education, first aid and to arrange blood camps etc.. vi. To organize competitions, elocution competitions, clea....
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.... TDS deducted u/s 194C of the Act leading credence to the fact that the assessee is in the work of executing contracts. Preservation of watersheds environment can be treated as general public utility, but any entity obtaining a contract for water works, drainage, or any other similar work cannot be treated as charitable work. The assessee-trust has obtained contract and executed the contract obtained from Govt. of Gujarat which is a business venture like any other contractor. 10.2 Further, the assessee-trust has incurred loss of Rs. 55,73,916/- in the irrigation contract work and set off the amount against the income from interest on FDRs of Rs. 61,81,344/-. The nature of operation is totally in tune with their operation of a commercial ....
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....al to the main charitable objective but is instead a primary profit-making motive, the exemption cannot be accorded. A trustee can receive compensation only if it represents reasonable remuneration for services rendered, rather than profit-taking. Further, using trust funds for the personal benefit of a trustee is strictly prohibited and shall lead to the loss of tax exemptions u/s 11 and 12, with income taxed at the Maximum Marginal Rate. Section 13(3) prohibits directing income / property to specified persons, including trustees, founders, or managers. Funds used for the benefit of a trustee are to be taxed at the maximum marginal rate. 10.4 In light of the foregoing facts and circumstances, we find no justification to interfere with t....