COMMISSIONER OF INCOME TAX Vs. AUDYOGIK SHIKSHAN MANDAL

JUDGEMENT

(1.) This Appeal under Sec. 260A of the Income Tax Act, 1961 (the Act), challenges the order dated 25th Feb., 2015 passed by the Income Tax Appellate Tribunal (the Tribunal). The impugned order dated 25th Feb., 2015 is in respect of Assessment Year 2004-05.

(2.) The Revenue urges the following question of law for our consideration:

(3.) It is an undisputed position that the Respondent-Assessee is a Trust, engaged in the activity of running educational institution. It is a registered Trust under Sec. 12AA of the Act. The Respondent in its return of income filed on 29th Oct., 2004 for the Assessment Year declared its income as "Nil". During the Assessment Proceedings, the Assessing Officer noted that on 29th March, 2004, the Respondent-Asssessee had purchased one Skoda car valued at Rs. 11.38 lakhs in the name of one of its Trustee Mr. Sandeep Pachpande i.e. person specified in Sec. 13(3) of the Act. In the above circumstances, the Assessing Officer in its order dated 23rd Dec., 2006 passed under Sec. 143(3) of the Act, denied the benefit of exemption to the entire income under Sec. 11 of the Act. Thus bringing to tax its entire income of Rs. 5.14 Crores in view of Sec. 13(2)(b) read with Sec. 13(3) of the Act.