Case Law Details
DCIT Vs M/s Divya Yog Mandir Trust (ITAT Delhi)
Exemption under section 11 was allowable on inter-trust donation by one charitable trust to another for utilization towards charitable objects.
Conclusion: Inter-trust donation by one charitable trust to another for utilization by the donee trust towards charitable objects was proper application of income for charitable purpose in the hands of donee trust and it would not affect the exemption claimed by assessee u/s 11 in any manner whatsoever nor inter-trust donation could be termed as deviation from its objects .
Held: Assessee-trust being registered under section 12A(a) had claimed exemption in terms of sections 11. AO held the activities of trust not covered u/s 2(15) and declined the exemption u/s 11 on the ground that the inter-trust donations made to Patanjali Yogpeeth, another charitable trust for the purpose of setting up of yoga gram and other yoga related activities, did not amount to application of income for the purpose of ‘medical relief’ or ‘imparting education’. It was held following the order passed by the coordinate Bench of Tribunal for AY 2009-10 in assessee’s own case, inter-trust donation by one charitable trust to another for utilization by the donee trust towards charitable objects was proper application of income for charitable purpose in the hands of donee trust and it would not affect the exemption claimed by assessee u/s 11 in any manner whatsoever nor inter-trust donation could be termed as deviation from its objects as it was nowhere the case of Department that donee trust had not applied such sums for charitable purpose by deviating its funds.
FULL TEXT OF THE ITAT JUDGEMENT
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Whether there are any other case laws in favour of assessee??