Director of Income Tax (Exemption) v. ACME Educational Society

326 ITR 146High Court2010#3684 most cited

What is Director of Income Tax (Exemption) v. ACME Educational Society authority for?

An interest-free loan provided by one charitable society to another, both registered under Section 12AA and possessing similar objectives, does not contravene Section 13(1)(d) read with Section 11(5) of the Income Tax Act, as such loans are not classified as investments or deposits.

32

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2012 to 2024.

Also referred to as

ACME Educational Society · Section 13(1)(d) · Section 11(5) · charitable trust · interest-free loan · investment · deposit · Section 12AA

Sections most often in play

Section 11Section 11(5)Section 13(1)(d)Section 145(3)

Issues it is cited on

prescribedpersonsection 143(3)indianfacbusinessdocumentinterest

Judgments citing Director of Income Tax (Exemption) v. ACME Educational Society

The Holiness Dr. Syedna Taher, Mumbai vs. Addl DIT (E) II(1), Mumbai

In the result, assessee’s appeal is allowed for statistical purposes

ITA 5463/MUM/2015[2011-12]Status: DisposedITAT Mumbai28 Jun 2018AY 2011-12

Bench: Shrisaktijit Dey & Shriramit Kochar

For Appellant: Shri Firoze B. AndhyarujinaFor Respondent: Shri T.A. Khan& Shri V.Justin
Section 11Section 11(5)Section 12ASection 13(1)(d)

…ion investment / deposit of funds. Therefore, the assessee is entitled to claim exemption under section 11 of the Act. In support of his contention, the learned Sr. Counsel relied upon the following decisions:– i) DIT(E) v/s Acme Educational Society, [2010] 326 ITR 146 (Del.); ii) CIT v/s Indian National Theater Trust, [2008] 305 ITR 149 (Del.); iii) National Engineering Co–ordination Committee v/s ACIT, [1992] 43 ITD 612 (Pune); iv) DDIT(E) v/s Shree Raj Foundation, ITA no.1242/Mum./2014, order dated 17.08.2016; v) Kanpur Subhash Shiksha Samiti v/s DCIT, [2011] 11 ITR 23 (Luck.); and vi) ACIT v/s MAC Public Ch…

DCIT, New Delhi vs. M/S Vip Forex Pvt. Ltd., New Delhi

In the result, appeal of the Revenue is dismissed

ITA 509/DEL/2011[2004-05]Status: DisposedITAT Delhi20 Nov 2017AY 2004-05

Bench: Sh.G.D.Agrawal, Hon’Ble & Sh.K.N.Charyvs Dcit Vip Forex Pvt. Ltd. Circle 17(1), 4/35, Majestic Place, C.R. Building W.E.A., Saraswati New Delhi Marg, Karol Bagh New Delhi Pan:Aabcv6909M (Appellant) (Respondent) Department By Sh. Amit Jain, Sr. Dr O Respondent By Sh. Sunil Arora & Sh. Akash O Chugh, Ca R Date Of Hearing 16.11.2017 D Date Of Pronouncement 20.11.2017 E Order

Section 153Section 269Section 269SSection 271Section 271DSection 274Section 299S

…d vs. CIT 275 ITR 279. The Hon’ble Jurisdictional High Court in the case of CIT vs. I.P. India Pvt Ltd. 2011 16 taxmann.com 407 (Delhi) noted the above decision but while referring to the decision reported in DIT (Exemption) v. Acme Educational Society [2010] 326 ITR 146 it was held that a loan grants temporary use of money, or temporary accommodation, and that the essence of a deposit is that there must be a liability to return it to the party by whom or on whose behalf it has been made, on fulfillment of certain conditions. While placing reliance on these two decisions, viz., I.P. India Pvt Ltd (supra) and Acme…

Nekrtc Passenger Accident Relief Fund Trust, Gulbarga vs. Assistant Commissioner of Income Tax, Gulbarga

In the result, the appeal is allowed for statistical purpose

ITA 126/BANG/2017[2010-11]Status: DisposedITAT Bangalore28 Apr 2017AY 2010-11

Bench: Shri Vijay Pal Rao

For Appellant: Shri Shreehari Kutsa, C.AFor Respondent: Shri AR.V.Sreenivasan, JCIT (D.R)
Section 11Section 12ASection 13Section 13(1)(c)Section 13(1)(f)Section 13(3)Section 13(3)(b)Section 13(4)Section 2

…TR (Trib) 264. He has relied upon the decision of Mumbai Tribunal in the case 5 NEKRTC PAR Fund Trust of St. Joseph’s Technical School Vs. ADIT (Exemptions) 42 ITR (Trib) 67. The learned Authorised Representative has then relied upon the decision of Hon'ble 326 ITR 146. Thus he has contended that when both the institutions are registered under Section 12A of the Act then lending to the other charitable institution amounts to application of income and the provisions of Section 13 are not attracted. Alternatively, he has submitted that as per Section 13(4) of the Act, if the investment made does not exceed 5% o…

M/S. Make the Future of Country Educational Society, Rohtak vs. ITO (E), Rohtak

In the result, the Appeal filed by the Assessee stands allowed

ITA 3401/DEL/2016[2012-13]Status: DisposedITAT Delhi20 Jan 2017AY 2012-13

Bench: Shri H.S. Sidhu

For Appellant: Sh. Gautam Jain, Adv. & ShFor Respondent: Sh. Anil Sharma, Sr. DR
Section 11Section 13(1)(d)Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 234BSection 234C

…ppreciate that adance is neither an ‘investment’ nor a ‘deposit’ therefore, Section 13(1)(d) of the Act is not attracted. To support this contention, he relied upon the following cases:- - Alarippu vs. ITO 60 ITD 478 (Del) - DIT vs. Acme Educational Society 326 ITR 146 (Del) - Kanpur Subhash Shiksha Samiti vs. DCIT 133 ITD 182 (Luck) - Sri Koundiya Education Society vs. ACIT 47 ITD 625 (Vizak) 5.1 Ld. Counsel of the assessee with regard to ground no. 2 has stated that since the assessee society is eligible for exemption u/s. 11 of the I.T. Act, 1961, the addition of Rs. 62,781/- being the surplus which wa…

ITO (E) 2(3), Mumbai vs. St Josephs Technical School, Mumbai

In the result, the appeal filed by the Revenue is dismissed

ITA 1417/MUM/2015[2010-11]Status: DisposedITAT Mumbai28 Oct 2016AY 2010-11

Bench: Shri Rajendra & Shri C.N. Prasadआयकर अपील सं /I.Ta No. 1417/Mum/2015 ("नधा"रण वष" / Assessment Year: 2010-11 The Ito (E) 2(3), St. Joseph’S Technical School, बनाम/ Piramal Chambers, Premier Automobiles Road, Vs. 5Th Floor, Parel, Kurla (W), Mumbai-400 012 Mumbai-400 070 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aacts 0971N .. (अपीलाथ" /Appellant) (""यथ" / Respondent) Shri Rajesh Ojha अपीलाथ" ओर से/ Appellant By: ""यथ" क" ओर से/Respondent By: Shri Kishor P. Pabari

For Respondent: Shri Kishor P. Pabari
Section 11Section 11(2)Section 11(5)Section 13(2)(a)

…ms or modes specified in section 11(5) whereas the case of the assessee is that no part of the income is applied or invested by way of advances to Don Bosco Institute and on identical issue the Hon'ble Delhi High Court, in the case of Acme Educational Society 326 ITR 146, observed that interest free loan given by the assessee society to another society with identical object cannot be treated as “investment” or “deposit” in which event there is no violation of section 13(1)(d) r.w.s. 11(5) of the Act. The case of the assessee herein is that both the assessees have similar objects and were registered under section…

ITO (E) 2(3), Mumbai vs. St. Joseph Technical School, Mumbai

In the result, the appeal of the Revenue is dismissed

ITA 4271/MUM/2015[2011-12]Status: DisposedITAT Mumbai18 Aug 2016AY 2011-12

Bench: Sri Mahavir Singhthe Income Tax Officer (E) 2 (3), Vs. St. Joseph Technical School, Room No.513, Piramal Chambers, Premier Automobile Road, Lalbaug, Parel, Mumbai 12 Kurla(West), Mumbai 400070 Pan: Aacts 0971 N Appellant .. Respondent Appellant By .. Shri K. L. Kanak, Sr. Dr Respondent By .. Shri Ashok Gokani, Ar Date Of Hearing .. 18-08-2016 Date Of Pronouncement .. 18-08-2016 O R D E R Per Mahavir Singh, Jm: This Appeal By The Revenue Is Arising Out Of Order Of Cit (A)-1, Mumbai In Appeal No. Cit (A)-1/It/E-1(4)/2014-15 Dated 23-04-2015. Assessment Was Framed By Ito (E) 1(1), Mumbai For The Assessment Year 2011-12 U/S 143(3) Of The Income Tax Act, 1961 (Hereinafter ‘The Act’) Vide His Order Dated 06Th March, 2014. 2. The Only Issue In This Appeal Of The Revenue Is Against The Order Of The Cit (A) Allowing Exemption U/S 11(5) Of The Act Treating The Educational Activity Being The Courses Conducted By The Assessee Such As Welding, Allied Trades, Draughtsman Course, Workshop Skill Etc. The Revenue Has Also Raised The Issue Regarding Violation Of Section 11(5) Read With Section 13(2) (A) Of The Act Being Interest Free Funds Advanced To Don Bosco Institute Of Technology As Interest Free Advance Amounting To Rs.2.69 Crores.

Section 11Section 11(2)Section 11(5)Section 13(2)Section 143(3)Section 2(15)

…ms or modes specified in Section 11(5) whereas the case of the assessee is that no part of the income is applied or invested by way of advances to Don Bosco Institute and on identical issue the Hon'ble Delhi High Court, in the case of Acme Educational Society 326 ITR 146, observed that interest free loan given by the assessee society to another society with identical object cannot be treated as “investment” or “deposit” in which event there is no violation of section 13(1)(d) r.w.s. 11(5) of the Act. The case of the assessee herein is that both the assessees have similar objects and were registered under section…

Asst.C.I.T., Mangalore vs. Vishwachetan Foundation, Hubli

In the result, the appeal of revenue is dismissed

ITA 1040/BANG/2015[2010-11]Status: DisposedITAT Bangalore11 Aug 2016AY 2010-11

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri Sunil Kumar Agarwal, JCIT (D.R)For Respondent: Shri H. N. Khincha, C.A
Section 11Section 13(1)(e)Section 13(2)(a)Section 28

…pecified under section 13(3) of the Act as there is no benefit to the trustee directly or indirectly because of this amount given to another trust. He has relied upon the decision of the Hon'ble Delhi High Court in the case of DIT Vs. Acme Education Society 326 ITR 146. 9 8. We have considered the rival submissions as well as the relevant material on record. There is no dispute that the loan was given by the assessee trust to another trust running and engaged in the similar activity of educational institution. It is also not disputed that none of the trustees of these two trusts is getting any benefit from th…

DDIT (E) - I, Kolkata vs. Sasha Association for Craft Products, Kolkata

In the result, Revenue’s appeal stands dismissed

ITA 914/KOL/2013[2008-2009]Status: DisposedITAT Kolkata27 Apr 2016AY 2008-2009

Bench: Shri Waseem Ahmed & Shri S.S.Viswanethra Raviassessment Year :2008-09 Ddit(E)-I, 5Th Floor, V/S. Sasha Association For 10B, Middleton Row, Craft Products Kolkata-700 071 Ic, Chahatu Babu Lane, Kolkata-700 014 [Pan No.Aabts 5580 N] .. अपीलाथ" /Appellant ""यथ"/Respondent

Section 11Section 11(2)(b)Section 11(5)Section 12ASection 13(1)(d)Section 13(2)(h)Section 13(3)Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH “A” KOLKATA Before Shri Waseem Ahmed, Accountant Member and Shri S.S.Viswanethra Ravi, Judicial Member Assessment Year :2008-09 DDIT(E)-I, 5th Floor, V/s. Sasha Association for 10B, Middleton Row, Craft Products Kolkata-700 071 IC, Chahatu Babu Lane, Kolkata-700 014 [PAN No.AABTS 5580 N] .. अपीलाथ" /Appellant ""यथ"/Respondent Shri Rajat Kr. Kureel, JCIT-SR-DR अपीलाथ" क" ओर से/By Appellant Shri S.M.Surana, Advocate ""यथ" क" ओर से/By Respondent 30-03-2016 सुनवाई क" तार"ख/Date of Hearing 27-04-2016 घोषणा क" तार"ख/Date of Pronouncement आदेश /O R D E R PER Wasee…

Vairams Kindergarten Society, Pudukkottai vs. ITO, Pudukkottai

In the result, the appeal filed by the assessee is allowed

ITA 289/CHNY/2014[2010-11]Status: DisposedITAT Chennai06 Feb 2015AY 2010-11

Bench: Shri B.R. Baskaran & Shri Vikas Awasthyआयकर अपील सं./Ita No.289/Mds/2014 "नधा"रण वष" /Assessment Year : 2010-11 M/S Vairams Kindergarten Society, The Commissioner Of Income Rajagopalapuram, V. Tax (Appeals), Pudukottai – 622 003. Tiruchirapalli. Pan : Aagfv 4771 P (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri R. Srinivasan, AdvocateFor Respondent: Shri P. Radhakrishnan, JCIT
Section 10Section 11Section 12A

…ubmitted that the decision rendered in the case of Seethakathi Trust shall be applicable to assessee also. The Ld A.R invited our attention to the decision of Hon'ble Delhi High Court rendered in the case of DIT (Exemption) v. ACME Educational Society (2010) 326 ITR 146, wherein it was held that the amount advanced by one educational society to another educational society cannot be considered as violation of provisions of Section 13(1)(d) read with Section 11(5) of the Act, since the interest-free loan given by the assessee-society was neither an investment nor a deposit. The Ld A.R submitted that the assesse…

CIT vs. Sarla Fabrics Pvt Ltd

ITA - 788 / 2011HC Delhi20 Jul 2012
Section 269SSection 271Section 80H

…e duty of the depositor to go to the banker or to the depositee, as the case may be, and make a demand for it. This judgment was approvingly cited by a Division Bench of this court in Director of Income Tax (Exemption) vs ACME Educational Society (2010) 326 ITR 146 (Del). In this decision, it was held that a loan grants temporary use of money, or temporary accommodation, and that the essence of a deposit is that there must be a liability to return it to the party by whom or on whose behalf it has been made, on fulfillment of certain conditions. If 2012:DHC:4457-DB ITA-788/2011 Page 4 these tests…

CIT vs. Numero Uno Financial Services Pvt Ltd

ITA/857/2011HC Delhi05 Mar 2012

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE R.V.EASWAR

Section 271D

…Pvt. Ltd Vs.Commissioner of Income Tax (2005) 275 ITR 399 and reference was made to the decisions in Baidya Nath Plastic Industries (P) Ltd. and Ors vs K.L. Anand (1998) 230 ITR 522 and Director of Income Tax (Exemption) vs ACME Educational Society (2010) 326 ITR 146 (Del). Decision of Madras High Court in ITA 857/2011 Page 4 Commissioner of Income Tax Vs. Rugmini Ram Ragav Spinners (P) Ltd. (2008) 304 ITR 417 was also considered and examined. 8. Thus, the first and the foremost aspect, which has to be considered and examined is whether the amount received was loan or deposit. This aspect has…

CIT vs. Numero Uno Financial Services Pvt Ltd

ITA - 857 / 2011HC Delhi05 Mar 2012
Section 271D

…Pvt. Ltd Vs.Commissioner of Income Tax (2005) 275 ITR 399 and reference was made to the decisions in Baidya Nath Plastic Industries (P) Ltd. and Ors vs K.L. Anand (1998) 230 ITR 522 and Director of Income Tax (Exemption) vs ACME Educational Society (2010) 326 ITR 146 (Del). Decision of Madras High Court in 2012:DHC:1558-DB ITA 857/2011 Page 4 Commissioner of Income Tax Vs. Rugmini Ram Ragav Spinners (P) Ltd. (2008) 304 ITR 417 was also considered and examined. 8. Thus, the first and the foremost aspect, which has to be considered and examined is whether the amount received was loan or deposit.…