The Delhi bench of the Income Tax Appellate Tribunal (ITAT) has granted income tax exemption to a Charitable Society in respect of the property used by the Chairman as the residence.
The Assessing Officer has denied exemption under section 11 (2) of the Act by finding that the property in question has been purchased in the name of Fr. Shaji Mathews, Chairman of the Society, whereas it is not the case, rather the property was purchased in the name of the society but through its Chairman.
The Tribunal noted the fact that in order to carry out the charitable activities, the Chairman of the assessee society needs accommodation otherwise he would have to put in rented accommodation.
“Furthermore, ld. AR for the assessee brought on record evidence, available at pages 58 to 73 of the paper book, to prove the fact that the property in question has not only been used for residential purpose of the Chairman of the Society but has been extensively used for conducting workshop by the faculty members, for conducting Hindi workshop, to convene meetings of the academy’s core committee etc., and these facts go to prove that the property in question was also being used in order to carry out the charitable activities by the society. So, we are of the considered view that the ld. CIT (A) has rightly deleted the addition of Rs.80,00,000/- by holding that the assessee society is eligible for benefit of sections 11 & 12 of the Act,” the Tribunal said.
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