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| The Tax Publishers2020 TaxPub(DT) 3824 (Karn-HC) : (2020) 428 ITR 0479 INCOME TAX ACT, 1961
Section 11
Where AO ignored the submission made by assessee that assessee provides free meals to general public on every Sunday morning in free distribution hall and finding recorded by AO that assessee had not carried any charitable activity was perverse and expenditure was definitely incurred on a section of society and therefore, the same would tantamount to a charitable purpose, accordingly, appeal of Revenue was dismissed.
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Charitable trust - Exemption under section 11 - Charitable activity under section 2(15) -
Assessee-trust was providing educational, medical relief to the poor and to provide services of general public utility. Assessee filed the return of income by which total expenditure was shown over income. Assessee claimed a sum being a provision for bad and doubtful debts. AO by an order held that free food, which was claimed to have been distributed to weaker sections of public in general by assessee was not substantiated by producing any evidence. It was further held that assessee distributed 'Prasada' to visitors who belonged to middle class and the donations, which were collected were not expended for purposes of which Trust was incorporated. Held: CIT(A) had held that AO ignored the submission made by the assessee that the assessee provides free meals to general public on every Sunday morning in free distribution hall and therefore, finding recorded by AO that assessee had not carried on any charitable activity was perverse. Tribunal held that all the pilgrims who visit ISKON Temple are served with 'Prasadam' without probing into their caste, creed, religion and nationality. Thus, expenditure was definitely incurred on a section of society and the same would tantamount to a charitable purpose. Therefore, assessee was carrying on charitable activity and appeal of Revenue was dismissed.
Relied:CIT v. Rajasthan and Gujarati Charitable Foundation Poona (2018) 7 SCC 810 : 2017 TaxPub(DT) 5384 (SC) M/s. Vijaya Bank v. CIT & Anr. (2010) 323 ITR 166 (SC) : 2010 TaxPub(DT) 1825 (SC) Asstt. CIT v. Thanthi Trust (2001) 247 ITR 785 (SC) : 2001 TaxPub(DT) 1078 (SC) Trustees of H.EH The Nizam's Supplemental Family Trust v. CIT (2000) 3 SCC 501 : 2000 TaxPub(DT) 1245 (SC) Ahmedabad Rana Caste Association v. CIT (1971) 82 ITR 704 (SC) : 1971 TaxPub(DT) 0389 (SC) CIT v. Andhra Chamber of Commerce (1965) 55 ITR 722 (SC) : 1965 TaxPub(DT) 0190 (SC) CIT v. J.K. Charitable Trust (1992) 196 ITR 31 (All) : 1992 TaxPub(DT) 0430 (All-HC) CIT v. Society of the Sisters of St. Anne (1984) 146 ITR 28 (Kar) : 1984 TaxPub(DT) 0734 (Karn-HC)
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2004-05
INCOME TAX ACT, 1961
Section 36(1)(viia)
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