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Director Of Income Tax (Exemption) vs Acme Educational Society on 28 July, 2010

7. We have carefully gone through the judgment of the Delhi High Court in Acme Educational Society (supra). The assessment year involved in the case before the Delhi High Court is assessment year 2005-06. The assessee trust before the Delhi High Court gave a loan of Rs.90,50,000 to another educational society, whose president was brother of the assessee society's president before the Delhi High Court. The department contended that there was a violation of section 11(1)(d) r.w.s. 11(5) of the Act since the amount was advanced to another society. The Delhi High Court found that the advance of Rs.90,50,000 to Navbharat Education 8 ITA No. 162 & 163/Coch/2014 Society cannot be construed as investment or deposit, therefore, such advance does not violate section 11(1)(d) r.w.s. 11(5) of the Income-tax Act since the same cannot be treated either as investment or as deposit. Apparently, the provisions of Explanation to section 11(2) and section 11(3)(d) which was inserted by Finance Act, 2002 with effect from 01-04- 2003 was not brought to the notice of the Delhi High Court, therefore, the Delhi High Court had no occasion to consider the implications of Explanation to section 11(2) and section 11(3)(d) of the Act.
Delhi High Court Cites 19 - Cited by 32 - Manmohan - Full Document

The Commissioner Of Income Tax Ii ... vs M/S. Audh Educational Society Kanpur ... on 14 July, 2010

2. Shri M Anil Kumar, the ld.DR submitted that both the assessees are registered as charitable trust u/s 12AA of the Act. During the year under consideration, the assessing officer found that both the assessees have given loan to other trusts from the unutilised portion of the income which exceeded more than 15%. Referring to section 13(1)(d)(i) of the Act, the ld.DR submitted that the assessee trust invested its funds in the form / mode otherwise than prescribed in section 11(5) of the Act. Therefore, according to the ld.DR, there was violation of section 11(2) r.w.s. 13(2)(d) of the Act. According to the ld.DR, the assessee is not entitled for any exemption. The ld.DR placed his reliance on the judgment of the Allahabad High Court in CIT vs Audh Educational Society (2011) 15 taxmann.com 235 (All.).
Allahabad High Court Cites 0 - Cited by 12 - Full Document
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