DCIT, C-1, (E), CHANDIGARH vs. M/S ARYANS EDUCATIONAL AND CHARITABLE TRUST, MOHALI

ITA 880/CHANDI/2019Status: DisposedITAT Chandigarh25 July 2024AY 2014-15Bench: SHRI A.D. JAIN (Vice President), DR KRINWANT SAHAY (Accountant Member)13 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the CIT(A) was correct in allowing benefits under Section 11 as the imprest balance was a carry-over from the previous year and no new accretion warranted invoking Section 13. The donation to India Vision Foundation was also held to be an allowable application of income as it was made to another registered charitable trust.

What were the facts?

The Revenue appealed against the CIT(A)'s order allowing benefits under Section 11 to the assessee trust. The primary issue was whether the assessee violated Section 13 by giving undue benefit to its Chairman by allowing him to retain funds without interest or security. Another issue was the allowability of a donation made to India Vision Foundation.

What were the issues?

Whether retaining an imprest balance by the Chairman constitutes undue benefit violating Section 13, and if a donation to another charitable trust is a valid application of income under Section 11.

Which sections of the Income-tax Act were involved?

Section 11,Section 13,Section 13(3),Section 2(15)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CHANDIGARH BENCH, ‘A’, CHANDIGARH

Before: SHRI A.D. JAIN & DR KRINWANT SAHAY

For Respondent: Shri Rohit Sharma, CIT DR
Hearing: 19.06.2024Pronounced: 25.07.2024

Per Dr. Krinwant Sahay, A.M.:

Appeal in this case has been filed by the Revenue against the order dated 05.03.2019 of the ld. Commissioner of Income Tax (Appeals)-2, Chandigarh, [herein referred to as “CIT(A)’] on the following Grounds: -

880--Chd-2019 – M/s Aryans Educational and Charitable Trust, Mohali 2

i. That on the facts and in the circumstances of the case, the Ld. CIT(A) has erred in law in allowing the benefits under section 11 of the IT Act without appreciating that there was a clear viola

The order continues below.

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