Assessee-trust was conducting its activities in carrying out charitable activities, i.e., education, relief to poor, etc..During year, assessee purchased a luxury vehicle by utilizing funds of assessee-trust and same was registered in name of managing trustee. Assessing Officer denied exemption under sections 11 and 12 to extent of value of that vehicle on ground that objects of assessee trust were carrying out of charitable activities and fund collected for this charitable purposes was utilized for enjoyment of trustees by means of purchase of said vehicle in name of managing trustee which was a clear violation under section 13(1)(c). CIT(A) affirmed the order of the AO. On appeal\u00a0 the\u00a0 Assessee contended \u00a0that car was purchased in name of managing trustee for simple reason that it gave relief by way of lower road\/life tax and insurance charges. Tribunal held the \u00a0assessee could not prove as to what use this asset was put to by trust in work of trust and for purposes for which trust had been set up. Since assessee was not able to establish that said vehicle is \u00a0utilized for purpose of charitable activities, the order of lower authorities denying the\u00a0 \u00a0exemption under sections 11 and 12 is affirmed. (AY. 2016-17)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 13 : Denial of exemption-Trust or institution-Investment restrictions-Purchase of luxury vehicle-Registered in name of manging trustee-Not able to establish that vehicle was utilized for purpose of charitable activities-Exemption under sections 11 and 12 is denied on value of vehicle purchased [S. 11, 12, 13(1)(c)] <\/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-50518","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-d8O","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50518","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=50518"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50518\/revisions"}],"predecessor-version":[{"id":50519,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50518\/revisions\/50519"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=50518"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=50518"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=50518"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}