07-05-2007, 07:35 PM
More on India's head Chor
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>Pratibha trust diverted capitation fee </b>
Pioneer.com
Navin Upadhyay | New Delhi
To evade income tax, students made to 'donate' to family's other trust
A college in Jalgaon set up by Shram Sadhana Trust, founded by UPA presidential nominee Pratibha Patil, had adopted an innovative way to extract capitation fee. The students were asked to make donations to another of the Patil family's enterprise, Maharashtra Mahila Udyam Trust (MMUT), which in turn channelled the money to Shram Sadhana Trust.
This was apparently done to evade income tax because under the provisions of the IT Act donations to educational institutions do not attract taxation. Pratibha Patil is the managing trustee of the SST, which also runs three hostels and several educational institutions.
The cases goes back to the assessment years 1986-87 and 1987-88, when MMUT had paid donations of Rs 17 lakh to Shram Sadhana Trust for the construction of the College of Engineering and Technology building in Jalgaon.
In 2003, the Income Tax department had filed an appeal before the Income Tax Appellate Tribunal (ITAT) against Commissioner of IT (Appeal)'s order to give exemption to the donations given to Maharashtra Mahila Udyam Trust. The MMUT was registered as a public charitable trust with the Charity Commissioner, Maharashtra.
Contending that the trust was not entitled for exemptions under Section 11 of the IT Act, the IT department claimed that the assessee trust was not engaged in carrying out any charitable activity and the donations paid to it were capitation fee for admission to a college.
Siding with the Income Tax authorities, the ITAT, Mumbai, in September 2003, ruled that donations to educational institutions could be exempted from taxation only if these were not paid as capitation fee.
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<b>Pratibhagate -- Novel methods
Done apparently to evade income tax as under IT Act, donations to educational institutions do not attract taxation
Cases date back to 1986-87, 1987-88
MMUT had paid donations worth Rs 17 lakh to Shram Sadhana Trust for college building construction
IT authorities furnished before Appellate Tribunal statement of seven donors who confirmed donations were not voluntary and were given indirectly as capitation fee for admission</b>
<!--QuoteEnd--><!--QuoteEEnd-->
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>Pratibha trust diverted capitation fee </b>
Pioneer.com
Navin Upadhyay | New Delhi
To evade income tax, students made to 'donate' to family's other trust
A college in Jalgaon set up by Shram Sadhana Trust, founded by UPA presidential nominee Pratibha Patil, had adopted an innovative way to extract capitation fee. The students were asked to make donations to another of the Patil family's enterprise, Maharashtra Mahila Udyam Trust (MMUT), which in turn channelled the money to Shram Sadhana Trust.
This was apparently done to evade income tax because under the provisions of the IT Act donations to educational institutions do not attract taxation. Pratibha Patil is the managing trustee of the SST, which also runs three hostels and several educational institutions.
The cases goes back to the assessment years 1986-87 and 1987-88, when MMUT had paid donations of Rs 17 lakh to Shram Sadhana Trust for the construction of the College of Engineering and Technology building in Jalgaon.
In 2003, the Income Tax department had filed an appeal before the Income Tax Appellate Tribunal (ITAT) against Commissioner of IT (Appeal)'s order to give exemption to the donations given to Maharashtra Mahila Udyam Trust. The MMUT was registered as a public charitable trust with the Charity Commissioner, Maharashtra.
Contending that the trust was not entitled for exemptions under Section 11 of the IT Act, the IT department claimed that the assessee trust was not engaged in carrying out any charitable activity and the donations paid to it were capitation fee for admission to a college.
Siding with the Income Tax authorities, the ITAT, Mumbai, in September 2003, ruled that donations to educational institutions could be exempted from taxation only if these were not paid as capitation fee.
.................
link
...............
<b>Pratibhagate -- Novel methods
Done apparently to evade income tax as under IT Act, donations to educational institutions do not attract taxation
Cases date back to 1986-87, 1987-88
MMUT had paid donations worth Rs 17 lakh to Shram Sadhana Trust for college building construction
IT authorities furnished before Appellate Tribunal statement of seven donors who confirmed donations were not voluntary and were given indirectly as capitation fee for admission</b>
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