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2019 (11) TMI 1460 - ITAT AHMEDABADBenefit of exemptions u/s. 11 - As per revenue assessee is involved in widespread commercial activities in nature of business and the activity of the assessee is covered under first and second proviso to sec.2(15) - advancement of general public utility - assessee is a company registered u/s. 25 of the Companies Act engaged in the activities of management of liquid and solid wastes in Naroda Industrial. Area company is registered u/s. 12AA and approved u/s. 80G(5) - HELD THAT:- Activities of assessee company squarely falls u/s. 2(15) of the Income-tax Act. The proviso to Section 2(15) is applicable to objects of general public utility. The same was also clarified vide CBDT Circular No. 11 dated 19.12.2008. Since assessee company is directly engaged in preservation of environment as per Section 2(15), the proviso as pointed by AO is not applicable in the instant case. AO was not justified to conclude that assessee is not doing any charitable activity. With regards to AO's contention that assessee is carrying out business activity and is in the nature of profit making, we find that benefit of exemption cannot be denied on the ground that it had made surplus/pro fits as long as it is not meant for private profit of seller. Profit making is not predominant object of activity. CIT(A) was justified in holding that assessee is doing charitable activity as per Section 2(15) benefit of Section 11 & 12 is available to it. CIT(A) was justified in directing AO to treat the activity of assessee company as charitable and further rightly directed to delete the addition - Decided against revenue.
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