The Tax Publishers2019 TaxPub(DT) 1250 (Bom-HC)

INCOME TAX ACT, 1961

Section 11

Where main object of assessee-trust was to impart education and for better utilization of its infrastructure, it allowed the training programs to be conducted at its premises also imparting training, itself, then it could not be alleged that assessee had undertaken any commercial venture, so as to deny exemption under section 11.

Charitable trusts - Exemption under section 11 - Denial of -

In the instant appeal, revenue assailed the order of Tribunal holding that letting out of premises for Technical education to the trainees of Jet Airways, Tata Sky only and not to the public in general is a charitable activity instead of a business activity. Revenue further contended that Tribunal was not right in holding that accumulation under section 11(2) can be used as loan to other Trust of same objects without investing in modes specified in section 11(5). According to revenue, there is specific provision in section 13(1)(d) of the Income Tax Act, 1961, which was not considered by Tribunal.Held: The main object of assessee-trust was to impart education. For better utilization of its infrastructure, it allowed the training program of Jet Airways and Tata Sky, to be conducted at its premises and in the process, also participated in imparting training. It could not be stated that the assessee had undertaken any activity in the nature of commercial venture. Further, grant of interest free loan by the assessee-society, to another society for carrying on same activity, does not amount either investment or deposit.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :



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