DIRECTOR OF INCOME TAX Vs. ACME EDUCATIONAL SOCIETY

JUDGEMENT

(1.) With consent of the parties, matter was taken up for hearing and final disposal. After extensively hearing both the parties, the Judgment was reserved in the matter on 19th July, 2010.

(2.) The present appeal has been filed under Section 260A of Income Tax Act, 1961 (for brevity "Act, 1961") challenging the order dated 23rd April, 2009 passed by the Income Tax Appellate Tribunal (in short "ITAT") in ITA No. 625/Del/2009, for the assessment year 2005-2006.

(3.) Briefly stated the relevant facts of the present case are that on 27th October, 2005 assessee-society filed a return declaring nil income and claiming benefit under Section 11 of Act, 1961. During the assessment proceedings, the assessing officer noticed that the assessee-society had in the assessment year 2005-2006 given a loan of Rs. 90,50,000/- to another educational society, namely, Nav Bharti Educational Society. It is pertinent to mention that the President of Nav Bharti Educational Society was the brother of the President of assessee-society. The assessing officer held that there was violation of Section 13(1)(d) read with Section 11(5) of Act, 1961 and accordingly, he denied benefit of Section 11 of Act, 1961 to the assessee-society.