Case Law Details
ITO Vs NCDEX Investor (Client) Protection Fund Trust (ITAT Mumbai)
Held that prior to 1-4- 2024 there was no bar on assessee claiming exemption under section 10 (23EC) and under section 11 and 12 of the act. Accordingly, contribution received from commodity exchange and members thereof is exempt u/s 10(23EC) of the Income Tax Act.
Facts- Assessee trust has been established by National Commodity & Derivatives Exchange Limited (NCDEX) by trust deed dated 25th June, 2012 with an object of compensating eligible claims of investors against defaulting members. It has the object also of creating awareness and educating public about the benefits of trading on commodity exchange and to publish books etc for the same object. As per notification dated 18th January 2017, the assessee has been specified as assessee trust for claiming exemption u/s. 10 (23EC) of The Act. Assessee is also registered u/s. 12A.
Assessee trust filed its return of income claiming exemption u/s. 10 (23EC) of the act. As assessee has also other income, assessee claimed deduction of amount of expenditure incurred on the object of the trust, income u/s. 11(1)(a) and further accumulation u/s. 11 (2) of the act. Thus, in nutshell, assessee on the income of contribution claimed exemption u/s. 10 (23EC) of the act and on the balance other income from property held under trust applied provisions of section 11 and 12 of the act.
CPC didn’t granted exemption under section 10 (23EC) of the act. CIT(A) directed AO to delete the addition and grant exemption u/s. 10(23EC). Being aggrieved, revenue has preferred the present appeal.
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