Give Foundation Vs Joint Director of Income-tax (Exemption) (Gujarat High Court)
Gujarat High Court held that since for the year under consideration, there is no retention of income but in fact there is a deficit of 7%, hence the question of denying the exemption under section 11 of the Income Tax Act wouldn’t arise. Accordingly, writ petition is allowed.
Facts- The present petition has been preferred by the petitioner. It is mainly contested that ITAT has erred in law and on facts in disallowing the surplus of income over expenditure amounting to Rs.31,93,755/- u/s 11 in complete ignorance of the fact that a appellant was charitable institution duly registered u/s 12AA working in the area of education, medical relief and relief to poor.
Conclusion- Held that for the year under consideration as stated herein above, there is no retention of income but there is a deficit of about 7%, the question of denying the exemption under Sec.11 of the Act would not arise in view of the decision of the Hon’ble Apex Court in the case of Ahmedabad Urband Development Authority. Therefore, we are of the opinion that there is no need to remand the matter back to the Assessing Officer and considering the facts available on record, we answer both the questions in favour of the assessee and against the revenue.
