Dismissing the appeal of the Revenue the Court held that when the registration is granted by the CIT(E),\u00a0 further probe by Assessing Officer into objects of\u00a0 Trust\u00a0\u00a0 based on such objects is not permissible.\u00a0 Activities of to identify, enrol, allot work, regulate operation of\u00a0 private workers from time of\u00a0 inception, activities for advancement of\u00a0 general public utility.\u00a0 Surplus\u00a0 earned\u00a0 retained\u00a0 for\u00a0\u00a0 carrying out\u00a0 activity\u00a0 cannot be treated as business activity\u00a0 Exemption cannot be denied. Amount advanced to Trustees,\u00a0 interest\u00a0 recognised on accrual basis,\u00a0 loans covered by adequate security and interest. Advance of loan\u00a0 cannot be treated as investments in violation of S.11(5) 11(3) of the Act there is no violation of\u00a0 Section 13(1)(c). 13(2) of the Act.\u00a0 As regards the accumulation of\u00a0 funds, form 10 filed for Assessment Year 1999-2000 showing purpose of\u00a0 accumulation. Purpose of\u00a0 accumulation is\u00a0 not general in nature.\u00a0 Activities carried on in accordance with approved charitable objects for which assessee was formed and registered\u00a0 there is no violation of\u00a0 Section 11(2). SLP of Revenue is dismissed\u00a0 as there was gross delay of 496 days in filing the SLP.\u00a0 (AY. 2003-04)\u00a0\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 11 : Property held for charitable purposes-Denial of exemption When the registration is granted by the CIT(E), further probe by Assessing Officer into objects of Trust based on such objects is not permissible-Activities of to identify, enrol, allot work, regulate operation of private workers from time of inception-Activities for advancement of general public utility-Surplus earned retained for carrying out activity-Cannot be treated as business activity-Exemption cannot be denied-Advances to Trustees-Interest recognised on accrual basis-Loans covered by adequate security and interest-Cannot be treated as investments in violation of S.11(5) 11(3) of the Act-No violation of Section 13(1)(c). 13(2) of the Act. Accumulation of funds-Form 10 filed for Assessment Year 1999-2000 showing purpose of accumulation-Purpose of accumulation is not general in nature-Activities carried on in accordance with approved charitable objects for which assessee was formed and registered-No violation of Section 11(2)-Delay of 496 days in filing the SLP-SLP of Revenue is dismissed. [S. 11(2) 11(4A), 11(5), 12A, 13(1)(c), 13(2) Art. 136] <\/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-48532","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-cCM","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/48532","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=48532"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/48532\/revisions"}],"predecessor-version":[{"id":48533,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/48532\/revisions\/48533"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=48532"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=48532"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=48532"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}