INCOME TAX ACT 1961

Section 11

Charitable trust - Exemption under section 11 - Violation of section 13(1)(d) -

Assessee a registered society under section 12AA running several educational institutions claimed exemption under section 11. AO denied exemption claimed on the ground that assessee made investments in violation of section 13(1)(d) read with section 11(5). CIT(A), however, held that since the income of the trust had been applied solely for educational purposes, the benefit of exemption under section 11 was certainly available to the assessee. Held: It was the specific case of revenue that the assessee was holding shares and other investments in private companies, which were outside the scope of section 11(5) and hence, they were not entitled for the benefit of section 11 as provided in section 13(1)(d), for the assessment years under consideration. Whereas the assessee stated that they were not holding any impermissible investments and they had not violated the provisions of section 11(5), as alleged. In support of the same, a memo was filed detailing the shares purchased and sold by the assessee in the form of a chart. Such being the submissions made by the parties, in the light of the factual matrix and as agreed by the parties appearing for both sides, the matter was remanded to the AO for fresh consideration.

REFERRED :

FAVOUR : Matter remanded

A.Y. :

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