CIT (Exemption) Vs Mukund Bhavan Trust (Bombay High Court)
Bombay High Court held that Income of trust to the extent of violation of section 13 of Income Tax Act, 1961 is liable to tax at maximum marginal rate. Section 11 Exemption cannot be denied for violation of section 13 of the Act.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
This appeal filed under section 260A of the Income Tax Act, 1961 (‘the Act’) challenges the order dated 28th June, 2017 passed by the Income Tax Appellate Tribunal, Mumbai Bench (‘ITAT’), whereby the appeal, being Income Tax Appeal No. 223/PUN/2014 filed by the Assessee for the assessment year 2010-2011 has been allowed. The following question of law has been passed for our consideration:-
“Whether on the facts and circumstances of the case and in law, the Hon’ble ITAT is right in holding that the violation fo sec.13(1)(c)(ii) does not lead to denial of exemption u/s 11 as against the principle laid down by the Hon’ble Apex Court in the case of DIT Vs Bharat Diamond Bourse dated 16 December 2002, (2003) 179 CTR SC 225?”
2. After arguing for some time, learned counsel for the parties submit that the issue is covered by a judgment of this Court in the case of Commissioner of Income Tax (Exemptions), Pune Vs. Audyogik Shikshan Mandal reported in (2019) 101 com 247.
3. In this view of the matter, no substantial question of law arises. The Appeal is dismissed. No order as to costs.
