Assessee trust made available land and also gave interest free loan to a trust which was not registered u/s 12AA. Accordingly, exemption u/s 11 was denied. On appeal to the Tribunal, it held that, in the absence of registration u/s 12AA, dealing with an unregistered trust by trust which is registered would affect the exemption available u/s 11. Objects of the trusts, even if identical, would not make an unregistered trust, as registered u/s12AA of the Act. Held, exemption u/s 11 was to be denied. (AY. 2009-10)
DIT(E) v. Paramasiva Naidu Muthuvel Raj Education Trust (2018) 66 ITR 3 (SN.) (Chennai.)(Trib.)
S. 13 : Denial of exemption-Trust or institution-Investment restrictions – Land and interest free loan given to a trust not registered u/s 12AA – Held, objects of the assessee and the recipient trust were same would not make the latter a registered trust u/s 12AA – Denial of exemption is justified . [S. 11, 12AA]