Krishi Upaj Mandi Samiti - An AOP Trust registered u/s. 12A of IT Act. Assessee failed in applying 85% of receipts of the year for charitable purposes. Assessee deposit an amt. Rs. 9,00,000/- to Treasury PD A/c. with suppose to covered it u/s. 11(5)(xii) read with rule 17C [Any other form or mode of investment or deposit as may be prescribed] [Any transfer of deposit to the public account of India - rule 17C(2)] [Deposit made with an authority consitituted in India by or under any law enacted either for the purpose of dealing with and satisfying the need for…… improvement of towns a& villages. Rule 17C(3)]
AO disallowed the claim, that it is not covered u/s. 11(5).
Clarify & give citation, if any available.
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