Assessee entered into a development agreement with developer TIPL to construct temple and building with several flats in addition to temple. As per agreement, TIPL would give 50 per cent of constructed area from newly constructed building to assessee. Assessee agreed to sale flats of his share to developer and two other parties Transaction of sale was concluded after grant of approval by Charity Commissioner vide order dated 31-3-2021.Assessing Officer\u00a0 held\u00a0 that considered an aggregate amount of consideration at certain amount as income of assessee from sale of property during year under consideration. On appeal the Tribunal held that\u00a0 since sales were to be concluded only upon sanction by Charity Commissioner who had granted approval on 31-3-2021 and enhanced compensation so decided amongst parties in subsequent year while passing his orders, such flats were not sold by assessee in year under consideration and, thus, no addition could be made in this year. As regards advanced loans without charging interest to a private company wherein more than 20 per cent shareholding was held by trustees of assessee. The Assessing Officer held that assessee had violated provisions of section 13(1)(c)\u00a0 and held that\u00a0 the\u00a0 assessee did not charge any interest on advances given despite fact that in assessment year 2011-12 assessee received an interest at 10.5 per cent on same. Therefore, he alleged that assessee had violated provisions of section 13(2)(a) since adequate security had not been taken for advances given. Accordingly, Assessing Officer denied exemption under section 11 to assessee\u00a0 and also proceeded to compute interest at rate of 10.5 per cent by applying rate at which interest was paid in assessment year 2011-12. Tribunal held that only consequence of case which fell within four corners of section 13 was denial of exemption under section 11 and section 13(2)(a) also did not authorise revenue to compute notional interest, in case no such interest was actually charged by trust. Since no real interest was accrued or received nor same was recorded by assessee in its books of account, addition made on account of notional interest by Assessing Officer is\u00a0 deleted. (AY. 2013-14)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 11 : Property held for charitable purposes-Development agreement-Advance received-Transaction of sale is concluded after grant of approval by Charity Commissioner vide order dated 31-3-2021-No addition can be made for the relevant assessment year-Notional interest-No real interest was accrued or received nor same was recorded by assessee in its books of account, addition made on account of notional interest by Assessing Officer is deleted [S.12A, 13(1)(c) ,13(2(a), 22 , Bombay Public Trust Act, 1950 , S.36]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-44485","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-bzv","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44485","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=44485"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44485\/revisions"}],"predecessor-version":[{"id":44486,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44485\/revisions\/44486"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=44485"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=44485"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=44485"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}