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2023 (7) TMI 734 - ITAT AHMEDABADExemption u/s. 11 and 12 - applicability of proviso of section 2(15) - activities of the assessee advancement of any other object of general public utility - HELD THAT:- We hold that the activities of the assessee for advancement of any other object of ‘General Public Utility’ for charitable purpose and therefore the assessee corporation shall be entitled to exemption u/s. 11 - As further clarified in case of ACIT vs. Ahmedabad Urban Development Authority [2022 (11) TMI 255 - SUPREME COURT] wherein it has been clearly held that the Revenues Appeals are dismissed as far as statutory Corporations/Boards. Decided against revenue. Violations of provisions of Section 11(5) with regard to the investments made in Gujarat Alkalies and Chemicals Ltd. (GACL) and Gujarat Lease Finance Ltd. (GLFL) thereby attracting provisions of section 11(1)(d) - As in the case of Gujarat Maritime Board [2023 (4) TMI 32 - ITAT AHMEDABAD] after considering the case of Fr. Mullers Charitable Institutions [2014 (2) TMI 1033 - KARNATAKA HIGH COURT], S.P. Memorial Trust [2014 (11) TMI 1111 - GUJARAT HIGH COURT] and Sheth Mafatlal Gagalbhai Foundation Trust [2000 (10) TMI 26 - BOMBAY HIGH COURT] allowed the issue in favour of the assessee as held only the relevant income falling within the mischief of section 13(1)(d) of the Act will lose the benefit of exemption under section 11 and 12 of the Act and the balance of the total income of the trust will remain eligible for the benefit of exemption under section 11 of the Act. Violation of section 13(1)(d) cannot lead to denial of exemption under section 11 and 12 of the Act, to the total income of the trust. The grounds raised by the assessee is hereby allowed. As there is no new investments made by the assessee both in GACL and GLFL during the present assessment year, the disallowance shall be restricted only to the dividend income of Rs. 2.26 crores only and exemption u/s. 11 and 12 of the Act cannot be denied to the assessee. Thus the ground no. 3 raised by the assessee is allowed.
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