Maharana of Mewar Charitable Foundation vs. ITO, Ward Exemption, Udaipur

Parties Involved

Facts Summary

The Maharana of Mewar Charitable Foundation, a public charitable trust running a school, filed an appeal against the Income Tax Officer's disallowance of 5% of its capital expenditure of Rs. 98,57,350/- for not being incurred for the objects of the trust. The Assessing Officer disallowed Rs. 4,92,968/- as not related to the trust's objects, which was upheld by the Commissioner of Income Tax (Appeals). The trust argued that all capital expenditure was for the objects of the trust and was an application of the income. The tribunal found that the disallowance of 5% of the capital expenditure was not acceptable as there were no specific instances pointing to the disallowance and the trust's activities were for the objects of the trust.…

Legal Issues

• 1. Disallowance of 5% of capital expenditure

Judgment Outcome

Decided in favour of Assessee.

Similar Judgements

• Vindhya Trust vs. DCIT

  Delhi Bench 'A' benchAY 2018-19Allowed

• Centre for Excellence for Agriculture Skills in India Vs. CIT(Exemptions), Chandigarh

  Delhi Bench benchAY 2022-23Allowed

• Dhanera Diamonds Ajbani Charitable Trust vs. The Commissioner of Income Tax (Exemption)

  Ahmedabad bench

• Centre for Excellence for Agriculture Skills in India Vs. CIT(Exemptions), Chandigarh

  Delhi Bench benchAY 2022-23Allowed

• Shri Baba Balakpuri Ji Charitable Trust vs CIT(E)

  Delhi Bench ‘G’, New Delhi benchAY 2023-24Allowed

• Seth PannaLal Charitable Trust vs. Commissioner of Income Tax (Exemptions)

  C Bench, Delhi benchAllowed