LAXMINARAYAN MANDIR TRUST,MUMBAI vs. INCOME TAX OFFICER (EXEMPTION) 1(4), MUMBAI

ITA 3273/MUM/2022Status: DisposedITAT Mumbai18 September 2023AY 2013-1415 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the addition on account of notional interest income was not sustainable as no real interest accrued or was received. It also upheld the deletion of an addition related to redevelopment project proceeds as the sale transaction was not concluded in the year under consideration.

What were the facts?

The assessee, Laxminarayan Mandir Trust, undertook a redevelopment project and advanced a significant sum to a related company, M/s Ramgopal Ganpatrai & Co. Pvt. Ltd. The Assessing Officer (AO) denied exemption under Section 11, citing violations of Section 13 due to the loan to a specified person and non-charging of interest.

What were the issues?

Whether the trust violated provisions related to advances to specified persons and non-charging of interest, leading to denial of exemption. Whether income from a redevelopment project was taxable in the year under consideration.

Which sections of the Income-tax Act were involved?

Section 11,Section 13(1)(c),Section 13(2)(a),Section 13(3)

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Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, “A” BENCH, MUMBAI

Before: SHRI B.R. BASKARAN & SHRI SANDEEP SINGH KARHAIL

For Appellant: Shri B.N. Rao
For Respondent: Smt. Shailja Rai

PER SANDEEP SINGH KARHAIL, J.M.

The present cross–appeals have been filed challenging the impugned order dated 02/11/2022, passed under section 250 of the Income Tax Act,

Laxminarayan Mandir Trust ITA no.3235/Mum./2022 ITA no.3273/Mum./2022 1961 ("the Act") by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [“learned CIT(A)”], for the ass

The order continues below.

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