Deposit covered u/s 11(5)

Tax queries 1375 views 1 replies

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.

 

Replies (1)
Ms.Anjali Agarwal As you said Rule 17(ii) is applicabe in your case. The AO must consider the same. If it is only reason for rejecting you can prefer an appeal. Best Wishes Sathikonda


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