Trust is occupying the third and fourth floor which belong to trustee and it is not paying any rent. Repair and renovation of building dine by the Trust .AO disallowed the expenditure on the ground, it was in contravention of S.13 of the Act .On appeal the Tribunal held that the Assessing Officer could not have disallowed expenditure incurred towards repairs and renovation of building owned by trustee on ground that it was in contravention of provisions of section 13(1)(c) as a benefit had accrued to trustee through such payment as the trustees were required to repay the expenditure incurred Matter remanded. (AY. 2012-13)
Children Welfare Education Trust. v. ITO(E) (2018) 172 ITD 650 (Mum.)(Trib.)
S. 13 : Denial of exemption-Trust or institution-Investment restrictions – Trust is not paying the rent which it occupied third and fourth floor- Repair and renovation of building owned by Trustee done by the Trust –Assessing Officer could not have disallowed expenditure incurred towards repairs and renovation of building owned by trustee on ground that it was in contravention of provisions of section 13(1)(c) as a benefit had accrued to trustee through such payment as the trustees were required to repay the expenditure incurred – Matter remanded. [S. 11, 12]