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2013 (10) TMI 1361 - AT - Income TaxExemption u/s 11 - Held that:- In the present case, there is no dispute on the fact that the assessee is carrying on the business of running an International Guest House (IGH) and Working Women's Hostel (WWH). Assessee is maintaining separate accounts for the above business activities. But, the crucial question is whether running of IGH and WWH is a business incidental to the attainment of the objectives of the trust or not. By any stretch of imagination, it is not possible to hold that the business of running IGH and WWH are incidental to the above stated objectives of the assessee-Trust. "Incidental" means offshoot of the main activities; inherent by-product of principal activities. Activities to compliment and support the main objectives are not in the nature of incidental to the business. They are supporting activities, at the maximum. The genesis of incidental activities must be from the principal activities themselves. There cannot be one source for the principal activities and another source for incidental activities. In the present case, even if the activities of the assessee are stated to be relief of the poor, medical relief and education, it is not at all possible to hold that running of the business in the form of IGH and WWH are business incidental to the carrying on of main objective of the assessee-Trust. Therefore, the assessee is not protected by the provision stated in Section 11(4A), either.
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