The exemption was denied by the AO u/s.11 and 12 on the ground that a purchase from related party was carried out. In absence of any further or extra payment made by the assessee to such related party, the transaction was held to be at arm’s length. The denial of exemption is held to be not justified. Appeal of revenue was dismissed. (AY. 2012-13)
Dy.CIT v. Shri Ramdoot Prasad Sewa Samiti Trust (2020) 189 DTR 323 / 205 TTJ 435 (Jaipur)(Trib.)
S. 11 : Property held for charitable purposes-Voluntary contributions-Transaction with related party at arm’s length-Exemption cannot be denied. [S. 2(15), 12, 13(2)(g)]