TaxTMI 
TaxTMI 
2025 (3) TMI 2269
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....der dated 18/10/2001). The Registration under Section 12A was revoked by DIT(E) vide order dated 07/12/2011. However, vide order dated 28/05/2014 passed in ITA No. 1074/Mum/2012, the Tribunal restored the registration under Section 12A of the Act. The aforesaid order of the Tribunal was upheld by the Hon'ble High Court of Bombay vide order dated 02/08/2017 passed in Income Tax Appeal No. 511 of 2015. For the Assessment Year 2013-14 the Assessee filed return of income on 28/09/2013 which was selected for regular scrutiny vide assessment order dated 03/03/2016 the assessing officer completed the assessment under Section 143(3) of the Act at assessed income of INR 7,73,77,15,499/- after making an addition of INR 42,77,50,000/- holding the contribution received by the Assessee-trust from the settlor in terms of the trust deed as income of the Assessee. The Assessing Officer also rejected Assessee claim for exemption under Section 11 of the Act. being aggrieved the Assessee preferred appeal before the CIT(A) against the aforesaid Assessment Order which was dismissed, vide order dated 30/09/2024. Now, being aggrieved the Assessee-trust has preferred the present appeal before the Trib....
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....1)(d) of the Act to corpus contribution received from settlors on the reasoning that DIT(E) has withdrawn the registration u/s 12AA(3) without appreciating the fact that order of cancellation of registration u/s 12A has been set aside by the Hon'ble Income Tax Appellate Tribunal (ITAT) and Departmental appeal against the said ITAT order has been dismissed by the Hon'ble Bombay High Court. (d) On the facts and circumstances of the case and in law, the Ld. CIT(A) and Ld. AO failed to appreciate that (i) The contribution received from the Settlors in terms of the trust deed are with a specific direction that they shall form part of the Corpus of the Trust and hence, the same cannot be included in the total income in view of the provisions of section 11(1)(d) of the Act; (ii) receipt of capital nature cannot be deemed to be income covered u/s 2(24) of the Act; (iii) the corpus contribution received by the appellant trust from settlors in terms of trust deed cannot be said to be covered u/s 2(24)(iia) of the Act which is upheld by Hon'ble ITAT, Mumbai in appellant trust's own case in earlier years. 1(a) On the facts and circumstances of t....
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....and in law, the Ld. CIT(A) erred in confirming the action of Ld. AO on wrong assumption of Hon'ble ITAT, Mumbai confirming the appellant trust's activity being covered u/s 2(15) of the Act in AY 2009-10 which is wrong and contrary to facts of the case, provisions of the Act and Rules made thereunder 2(b) On the facts and circumstances of the case and in law, the LA CIT(A) and Id. AO has failed to appreciate that- (i) the objects of the trust are covered within the meaning of charitable purpose and the trust was granted registration u/s 12A of the Act. The order of cancellation of registration u/s 12A has been set aside by the Hon'ble ITAT and Departmental appeal against the said ITAT order has been dismissed by the Hon'ble Bombay High Court. (ii) the appellant trust has no profit motive and to fall within proviso to section 2(15) of the Act, rendering of service to trade, commerce or business must be such that it is in the course of carrying on of business and for has a profit motive. (iii) xx xx (iv) xx xx 3. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in confirming the action of Ld. AO of no....
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....owards corpus of the trust and as mentioned elsewhere, the assessee trust is eligible for exemption u/s 11 of the Act. The impugned addition made by the AO does not hold any water. We accordingly direct the AO to delete the addition of Rs 2,22,50,000/-. 10. Since we have held that the assessee is eligible for exemption u/s 11 of the Act, the AO is directed to allow the benefit of deduction u/s 11(1)(a) of the Act as per the relevant provision of law. 11. In the result appeal of the assessee is allowed." (Emphasis Supplied) 8. Identical view has been taken by the Co-ordinate Bench of the Tribunal in the following appeals preferred by the Assessee: Appeal Number (ITA No.) Assessment Year Order Date 4048/Mum/2014 2009-2010 11/09/2015 6282/Mum/2014 2010-2011 20/01/2017 3250/Mum/2016 2011-2012 26/02/2018 2214/Mum/2018 2014-2015 30/07/2019 2684/Mum/2022 2018-2019 24/11/2023 9. Further, we find that the Assessing Officer has proceeded on incorrect understanding that the Co-ordinate Bench of the Tribunal has, while adjudicating appeal preferred by the Assessee against the order, dated 11/09/2015, passed under ....