Sri Srinivasa Educational & Charitable Trust v. ACIT (2020) 182 ITD 554 (Bang.)(Trib.)

S. 11 : Property held for charitable purposes-Application of income-Amount spent on construction of buildings-Exemption cannot be denied on the ground that the amount was spent in cash-No payment was made to have been made to alleged related persons. [S. 13(1)(c), 13(3), 132]

Tribunal held that, all expenses incurred on construction had been duly accounted for in books of account which had been duly audited and Assessing Officer had not brought any material on record to show that expenses incurred in cash for construction activities were not actually incurred for that purposes, but for some other purposes, Assessing Officer was not justified in rejecting part of such expenses.  Tribunal also held that there is violation of section 13(1)(c) read with section 13(3) of the Act  the AO has not identified the alleged related persons to whom the payment was made.  (AY. 2012-13, 2014-15)