COMMISSIONER OF INCOME TAX Vs. BALAJI SOCIETY

JUDGEMENT

(1.) These appeals involve the same assessee and identical questions of facts and law. In fact, they arise out of a common impugned judgment of Income Tax Appellate Tribunal ("the Tribunal" for short) dated 18.2.2015. These appeals are filed by the Revenue.

(2.) Following questions have been presented for our consideration :

(3.) The respondent assessee is a charitable trust and enjoys the registration under Sec. 12AA of the Income Tax Act, 1961 ("the Act" for short). During the Assessment Years 200809 and 200910, the Assessing Officer noticed that the assessee had incurred expenditure, some of which was paid to one M/s. Sri Balaji Creativites ("SBC" for short) towards advertisements in various magazines and souvenirs. The Assessing Officer noticed that said SBC was a partnership firm consisting of three partners who happened to be trustees of the respondent assessee trust. The Assessing Officer was of the opinion that the firm i.e. SBC was a firm covered under Sec. 13(3)(e) of the Act visaavis Trust. The Assessing Officer thereafter carried out the analysis of the expenditure in connection with the advertisements with a special focus on the payments made to the said SBC. He denied the benefit under Sec. 11 of the Act relying upon the provisions of Sec. 13(2)(c) of the Act.