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2014 (7) TMI 87 - ITAT HYDERABADExemption u/s 11 - Charitable activity - profit from an exhibition viz., 'Deep Mela' - commercial activity or not – Requirement to maintain separate books of accounts – Held that:- The activity of organising 'Deep Mela' is not a commercial activity - What is prohibited under the Act is carrying on business and not generating income in furtherance of its objects - The assessee was to generate income to finance its educational/charitable activities – Relying upon Assistant Commissioner Of Income-Tax Versus Thanthi Trust [2001 (1) TMI 80 - SUPREME Court] - a business whose income is utilised by the trust or the institution for the purpose of achieving the objectives of the trust or the institution surely is a business which is incidental to the attainment of the objectives of the trust - The objectives of the society would include financing charitable activities - the activity of organising 'Deep Mela' is incidental to the attainment of its objectives. - Decided in favor of assessee. Non utilization of amount - accumulation - Held that:- The AO has pointed out that the assessee failed to utilise the amount within the period allowed u/s. 11(2) of the Act and assessee filed details of its utilization – the issue of accumulation and utilisation of the amount accumulated is to be remitted back to the AO for verification of the details – Decided partly in favour of Assessee.
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