INCOME TAX ACT, 1961

Section 11

Charitable trusts - Exemption under section 11 - Vehicles added by assessee-educational society were school buses and transportation was not specifically mentioned in aims and objects of society -

Revenue challenged order of Tribunal contending that it erred in not adjudicating on issue of change in track from section 10(23C)(iiiad) to sections 11 and 12 by assessee society particularly when same was claimed for substantial number of years. Further, contention was that Tribunal ignored fact that main emphasis of society was adding to its fleet of vehicles and thereby generation of another source of income. Held: Finding recorded by Tribunal was not disputed that vehicles added were school buses. Even if transportation was not specifically mentioned in aims and objects of society, same will not make any difference. Carrying children to schools and back home is an essential for running schools especially if the schools are in rural areas. The safety of students is of utmost importance. Merely because society was earlier registered under section 10(23C), it cannot be taken as an adverse ground for consideration of application for registration under section 12AA. It is for society to take prudent decision for itself as to which section would be more beneficial.

REFERRED : CIT v. A.R. Trust, Meerut Appeal No. 112 of 2013 : 2017 TaxPub(DT) 4287 (All-HC)

FAVOUR : In assessee's favour

A.Y. :

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