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  • ITAT allows exemption of Rs 220 crore to Tata Education and Development Trust

    Published on July 26, 2020

    Income Tax Appellate Tribunal, ITAT has allowed exemption of Rs 220 crore to Tata Education and Development Trust. In a major relief to the trust, the ITAT bench consisting of Justices P. P. Bhatt, President, ITAT yesterday ruled in favour of the trust in their appeal against Commissioner of Income Tax appeal order wherein a demand of more than Rs 220 crore was levied by the Income Tax Department. ITAT also stayed the matter of that demand without any minimum pay.

    The case pertains to assessment years 2011-12 and 2012-13 on money spent by the trust for creating an Endowment Fund at Cornell University in US to provide scholarships to Indian students and granting financial assistance to the Harvard Business School for constructing an executive building to be named Tata Hall. 

    It donated Rs 197.79 crore in 2011-12 and Rs 25.37 crore in 2012-13. The controversy began after the Public Account Committee of the Lok Sabha in 2018 sought an enquiry in the matter as it believed that exemption granted by the direct tax body was in violation of the I-T Act.

    Concluding the matter, ITAT yesterday stated that all other grounds of appeals will be rendered, academic and infructuous. It said, We have decided this issue in favour of the assessee and thus allowed this ground of appeal. We, therefore, uphold the plea of the assessee and the resultant disallowance of claim of exemption.


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