ITAT Jaipur Denies Charitable Exemption Over Misuse of Cloth Merchant Trust Funds

Whole Sale Cloth Merchant Association Vs DCIT (ITAT Jaipur) Diversion of Trust Funds Fatal- ITAT Jaipur Upholds Denial of Exemption to Cloth Merchant Trust – Misuse of Rs.2.52 Cr Trust Funds Bars Charitable Exemption Assessee, a charitable trust registered u/s 12A since 1994, filed appeals against orders of CIT(A) upholding reassessments u/s 147/143(3) for three years. AO had denied exemption u/s 11/12 citing various violations & assessed income at Rs.3.92 crore for AY 2014-15, along with substantial additions on account of bogus creditors, unverifiable expenses, construction cost disall...