BUDHA VIKAS SAMITY Vs. COMMISSIONER OF INC TAX

JUDGEMENT

(1.) The Assessee has preferred this appeal under Section 260A of the Income Tax Act 1961 (hereinafter referred to as "the Act"), and is directed against the order dated 25.5.2007, passed by the learned Income Tax Appellate Tribunal, Patna Bench, Patna, in ITA No. 391(Pat.)/2004, whereby the appeal preferred by the Assessee has been rejected, and the Tribunal has upheld the orders passed by the learned Commissioner as well as the learned assessing officer. The three authorities have concurrently rejected part of the returns submitted by the Appellant, rupees five lacs transferred by it to Smt. Shanti Rai is not for charitable purpose, is really diversion of funds, and is taxable. It is with respect to the assessment year 2001-02.

(2.) The following substantial questions of law have been framed for our consideration:

(3.) A brief statement of facts essential for the disposal of this appeal may be indicated. The Assessee is registered as a Society under the provisions of the Societies Registration Act. It is also a charitable institution within the meaning of Section 2(15) of the Act, and is so registered by the learned Commissioner of Income Tax under the provisions of Section 12A of the Act. It was a charitable institution during the period in question.