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| The Tax Publishers2019 TaxPub(DT) 7875 (Del-HC) : (2020) 421 ITR 0476 INCOME TAX ACT, 1961
Section 11
Expenditure by assessee-trust on telecast of Samagams was for public at large and could not be held to be benefiting its founder because there was no evidence to construe that founder had derived any personal benefit which justified revenue to invoke provisions of section 13(1)(c)(ii) to deny assessee benefit of expenditure.
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Charitable trust - Exemption under section 11 - Expenditure on telecast af 'samagams' whether to be construed as be providing persional benefit to founder af assesse-trust -
Assessee was created vide Trust Deed by its founder called as 'Gurudevji'. It was granted registration under section 12A. During relevant year, AO alleged that Gurudevji was a person specified under section 13(3) and assessee had applied its income and incurred an expenditure on telecast of Samagams under the head 'Aadhyatamik Pravachan Expenses', for his benefit in violation of section 13(l)(c) and forfeited exemption under sections 11 and 12. On appeal, Tribunal upheld findings of CIT(A) on disallowance of 1/3rd expenditure on telecast of Samagams, holding that such expenditure was for public at large and cannot be held to be benefiting Gurudevji. Held: Expenditure on telecast of Samagams was for public at large and could not be held to be benefiting its founder Gurudevji. There being no evidence on record to construe that Gurudevji had derived any personal benefit which would justify revenue to invoke provisions of section 13(1)(c)(ii) to deny assessee benefit of expenditure. Thus, observations of Tribunal vis-a-vis disallowance of 1/3rd expenditure for telecast of Samagams, were reasonable and did not warrant any interference.
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
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