Guru Kripa Seva Ashram Vs. ITO, Exemption Ward 1(2), Pune

Parties Involved

Facts Summary

The assessee, Guru Kripa Seva Ashram, is a public charitable trust registered under section 12A of the Income Tax Act, 1961. It filed a belated return of income on 28.03.2015, declaring total income at nil. The assessee declared interest and other income at Rs.8,01,830/- under the head 'Income from other sources' and claimed application of income for charitable purposes at Rs.66,96,114/-. The assessee also declared an addition of Rs.32,91,450/- on account of income chargeable under section 11(1B) of the Act. The CPC, Bangalore processed the return on 16.03.2016 and passed an intimation under section 143(1) determining the income at Rs.40,93,280/-. Since the assessee did not show any receipt of contribution and did not furnish Form No.10B, the application of income for charitable or religious purposes was denied. The assessee filed an appeal before the CIT(A) / NFAC, which was dismissed. The assessee then appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Denial of deduction under sections 11 and 12 of the Act due to non-filing of Form No. 10B.
• 2. Treatment of Rs.32,91,450/- as income chargeable under section 11(1B).
• 3. Non-treatment of Rs.59,85,081/- as application of income.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Dogra Educational Society

  B Bench, Delhi benchAY 2018-19Dismissed

• Puran Chand Arora Charitable Trust vs. ITO, Exp. 2 (4)

  Delhi Bench ‘F’: New Delhi benchAY 2016-17Allowed

• Vetal Bambarde Vibhag Shikshan Prasark Mandal Vs. Income Tax Officer

  Pune bench

• Khemka Charity Trust vs. Income Tax Officer (Exemption)

  Kolkata Bench benchAY 2018-19Allowed

• Shree Govardhan Seva Trust vs. The Commissioner of Income Tax (Exemption)

  Ahmedabad bench

• M/s Trilok Singh Bhandari Charitable Trust Vs Income Tax Officer

  Delhi bench