Income Tax Officer(Exemptions) v. The Saraswati Educational Society Society REGD.

Parties Involved

Facts Summary

The assessee, a charitable trust registered under section 12AA of the Income Tax Act, filed a return of income for A.Y 2018-19 declaring total income Nil after claiming exemption under section 11 of the Act. The Assessing Officer denied the exemption by holding that the loan advanced of Rs.2.8 crores to specified persons (Chairman and his wife) is in violation of provisions section 13(1)(c) r.w.s 13(2) and 13(3) of the I.T Act. The CIT(A) held that the assessee has not violated the provisions of section 13(1)(c). The Revenue has appealed against this order.…

Legal Issues

• 1. Whether the loan given on interest to the persons specified under section 13(3) is a violation of provisions of section 13(1)(c) r.w.s 13(2) and 13(3) of the I.T Act and should be added for computing the income of the assessee.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

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