Held that the advances given by the assessee-society for purchase of land for its educational activities without interest or security have been accepted as genuine business deal by the CIT(E) and the proceedings for cancellation of registration under s. 12AA were dropped. There is no violation of provisions of s. 13(1)(c), 13(2)(a) and exemption under S. 11 cannot be denied. (AY. 2016-17)
Rastogi Education Society v. ITO (2024) 227 TTJ 478 / 233 DTR 225 / 38 NYPTTJ 11 /161 taxmann.com 220 (Raipur)(Trib)
S. 11 : Property held for charitable purposes-Advance for purchase of land in earlier year-Proposal for cancellation of registration is dropped-Addition as notional interest is deleted-Exemption cannot be denied. [S. 12AA, 13(1)(c), 13(2)(a) 13(3)]