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III. Direct Tax Case laws:
1. DIT (Exemption) Vs. Abul Kalam Azad Islamic Awakening, ITA No. 80/2013, Judgment delivered on: 26.02.2013, Delhi High Court
Decision: In favour of Assessee.
Section: 12AA(3) r.w.s. 12 of Income Tax Act 1961
Whether
surplus amount invested in commercial property leads to cancellation of
registration u/s 12AA(3) where no educational activity is carried out
in the said property.
Held No
There
cannot be a bar on management of Society to invest its surplus funds in
acquisition of a commercial property as the law does not mandate any
extra bar. Thus, assessee was entitled under Section 11(5)(x) of the Act
to invest in immovable property out of the funds which were surplus
with it. Registration under Section 12A cannot be cancelled in the
absence of evidence that the assessee had applied the income from
commercial property for non-charitable purposes.
(Please click here for judgment)
2. CIT Vs. Nirmal Bansal, ITA No. 198/2013, Judgment delivered on: 30.04.2013, Delhi High Court
Decision: Matter remanded
Section: 2 (14)(iii) of Income Tax Act 1961
Assessment Year: 2008-09 and 2009-10
Whether
the AO can term a land as non- agricultural merely on the ground that
there was the possibility of a shorter distance, which would be less
than 8 kms from the outer limits of the municipal corporation.
Held No
Where
AO had not doubted the nature of the land being for agriculture, he
cannot take the view that land is not agricultural in nature on account
of the possibility of there being some other ‘shortest distance’ between
the areas where the plots of land were situated.
(Please click here for judgment)
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