COMMISSIONER OF INCOME TAX Vs. SRI. 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 2008-09 and 2009-10, the Assessing Officer noticed that the assessee had incurred expenditure, some of which was paid to one M/s. Sri Balaji reactivities ("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 vis-a-vis 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.