Case Law Details
ACIT Vs St. Thomas Orthodox Church Society (ITAT Delhi)
Conclusion: In order to carry out the charitable activities, the Chairman of the society needs accommodation otherwise he would have to be put in rented accommodation. Further property has been extensibly used for conducting workshop by the faculty members, for conducting Hindi workshop, to convene meetings of the academy’s core committee etc., and these facts go to prove that the property in question was also being used in order to carry out the charitable activities by the society and hence the same is eligible for benefit u/s 11 and 12.
Facts –
Assessee has been granted registration u/s 12AA. During scrutiny proceeding, AO noted that amount of INR 80 Lakhs was accumulated during AY 2010-11 for the purchase of residential flat for Chairman of the society and out of the same flat of INR 75,28,480 was purchased in the name of Sri Shaji. AO, invoking provision of section 13(1)(c)(ii), disallowed application of income for purchase of residential house for the Chairman.
AO also made addition of INR 1,37,37,011 as accumulated funds under the head ‘building fund’, ‘school bus’ and ‘audio visual system’ on the ground that funds have not been utilized till the end of 31.03.2010 and since exemption u/s 11 and 12 has been denied the same cannot be allowed to carry forward the accumulated income.
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