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OVERVIEW FINANCIAL STATEMENTS

Schedule

Forming Part of the Balance Sheet and Income and Expenditure Account

3. The Trust pays 75% of the settled claim amount in the Assessment Year (A.Y.) 2002-03 to A.Y. 2006-07.
first instance, leaving balance amount to be paid after The Trust was registered u/s 12A of the Income
the conclusion of recovery proceedings. In 1,107 Cases Tax Act 1961 and accordingly it had claimed
(P.Y. 1,764 cases), subsequent payment of 25% has exemption u/s 11 of the Act for A.Y. 2007-08 and
been made. However, in other cases, the MLIs are yet A.Y. 2008-09. The Finance Act, 2008 amended
to report status of conclusion of recovery proceedings section 2(15) with effect from 1-4-2008 i.e. A.Y.
which makes them eligible for the receipt of the balance 2009-2010. Accordingly, the Trust had not claimed
claim. Further vide circular no.138/2017-18, the trust the benefit of section 11 from A.Y. 2009-2010
has introduced a cap on total claim settlement (i.e. onwards. However, the trust has made claim of
settlement of 1st & 2nd instalments of claim), based deduction of 15% u/s 11(1)(a) of the Act during the
on fee and recovery remitted by the MLI. Claims of the assessment proceedings.
respective MLI are settled to the extent of 2 times of the The Director of Income Tax (Exemptions) – [DIT
total of fees received and recovery remitted during the (E)] had vide order dated 07.12.2011 held that the
previous financial year.
activities carried out by the assessee trust are in
4. Auditor’s Remuneration ` 3,65,000/- (P.Y. ` 3,65,000/-). the nature of trade, commerce or business and
The fees are exclusive of taxes. referring to the amended provisions of section
2(15) of the Act, cancelled the registration granted
Amount (`)
u/s 12A to the Trust with effect from A.Y 2009-10.
Particulars Current Year Previous Year The Trust had preferred an appeal against this
Audit Fees 3,00,000 3,00,000 order before the Income Tax Appellant Tribunal
Tax Audit Fees 65,000 65,000 (ITAT) which got decided in favour of the Trust
Total 3,65,000 3,65,000 vide order dated 28.05.2014 and registration of

5. Taxation the Trust u/s 12A of IT Act was restored. Against
the said order of ITAT, the department had filed
5.1 Direct Taxation a petition before the High Court of Judicature at
The Trust was notified u/s. 10(23EB) of the Income Bombay which was dismissed vide order dated
Tax Act, 1961 (“the Act”) by Finance Act 2002 02.08.2017. Thus, the Registration of the trust u/s
w.e.f. 01.04.2002 and accordingly the income 12A/12AA is continuing. Order giving effect to ITAT
of the Trust was exempt u/s. 10(23EB) of the order dated 28.05.2014 was passed by the office
Act for a period of five years commencing from of CIT (Exemption) vide order dated 09.03.2021.

The year wise details of status of assessment and appeals are as under:

Appellant Pending Nature of addition /disallowance Disputed amount
before (Rupees in crores)
2009-10 Trust CIT (Appeals) 15% Deduction u/s 11(1)(a) not allowed while computing 30.47
taxable income
2010-11 Tax Dept. High Court Addition of amount accumulated u/s 11(2) in AY 2007-08 94.38
while computing taxable income
Addition of amount accumulated u/s 11(2) in AY 2008-09 154.61
while computing taxable income
Contribution received towards corpus from the Settlors added 166.41
while computing taxable income
2011-12 Trust CIT (Appeals) 15% Deduction u/s 11(1)(a) not allowed while computing 51.20
taxable income in the order passed pursuant to Order giving
effect to ITAT Order.
Department High Court Contribution received towards corpus from the Settlors added 250
while computing taxable income

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