[aaykarbhavan] No exemption to trust as it paid purchase price to specified person and got its refund without interest after one year

No exemption to trust as it paid purchase price to specified person and got its refund without interest after one year

March 24, 2014[2014] 43 taxmann.com 300 (Delhi)

IT : ITAT cant go simply by assessee's documentation & ignore normal course of human conduct & probabilities

• Where trust pays advance to the extent of 95 per cent of cost of property purchased to prohibited person without taking possession and without concluding a proper sale deed even after one year from the date of deal and then canceling the deal and getting the advance back without interest, section 13(1)(c)(ii) read with section 13(2)(a) is attracted and this will result in loss of income-tax exemption under section 11. Tribunal cannot allow itself to be simply led by assessee's documentation and ignore normal course of business conduct and probabilities in deciding whether section 13 is violated

 

Regards

Prarthana Jalan

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