Shanti Prime Publication Pvt. Ltd.
Sec. 11 of Income Tax Act, 1961 — Exemption - The appellant/assessee is a Society working under the Government of Punjab and running the Museum by the name of Maharaja Ranjit Singh War Museum and was registered under section 12AA of the Act on 06.08.1998. The object of the Society is to create sense of patriotism and nationality among the citizens. The annual receipts of the Society were Rs. 67,65,299/- and assessee had accumulated sum of Rs. 1,08,63,246/-. During the relevant year, Rupees one crore was given to Punjab State War Heroes Memorial & Museum Society, Amritsar [PSWHMMS] on directions of the Government of Punjab. The donee-Society was not registered under section 12AA at the relevant time though subsequently registered. The income tax return was selected for scrutiny, assessment was framed on 19.12.2016. Apart from other additions the amount transferred to PSWHMMS was considered as income of the appellant, holding that there was violation of section 11(2) and 11(3)(d) of the Act. The first appeal was partly allowed, however the impugned addition was upheld. In further appeal, the Tribunal partly allowed the but the addition in question was sustained. The issue involved in Appeal before High Court is “Whether the impugned transfer to PSWHMMS is deemed income of the Society in the year of transfer or not?” The addition of amount transferred to PSWHMMS is upheld. The question is answered against the appellant. The appeal is dismissed. - MAHARAJA RANJIT SINGH WAR MUSEUM SOCIETY V/s CIT -  315 CTR 423 (P&H)