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2013 (9) TMI 341 - AT - Income TaxCharitable activity u/s 2(15) - Registration of application u/s 12AA - Charitable work or public utility - Construction of shushk (dry) shauchalya (latrines) in the villages for proper sanitation - Held that:- assessee's case falls within the ambit of carrying on an activity for consideration. The assessee has not constructed the shushk shauchalya as a part of a social service but it only executed the contract awarded by DUDA. If the contention of the assessee is accepted, then every contractor who is constructing the roads, bridges or airports, power generation plants etc. can claim that they are doing the charitable work. From the income and expenditure account of the assessee for the immediately preceding two years, it is evident that the only activity carried out was for the execution of the contract awarded by DUDA. In view of the above, in our opinion, the assessee's case squarely falls within the ambit of proviso to Section 2(15) and, since the assessee is carrying on the activity for consideration being the contract amount received from DUDA, the same cannot be said to be charitable purpose. Once the activity of the assessee does not fall within the ambit of definition of 'charitable purpose', the learned CIT rightly refused to register the society for the purpose of Section 12A - Decided against assessee.
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