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2014 (5) TMI 401 - HC - Income TaxRegistration u/s 12AA - port trust to control the activities at a major port for utilizing and creating facilities. - Charitable Purpose - profit motive – Exemption u/s 11 of the Act - Held that:- For a trust to claim exemption u/s 11 of the Act from the property held wholly for charitable or religious purposes it has to apply for registration u/s 12A and such application has to be considered by the Commissioner as per the procedure laid down u/s 12AA of the Act - The port trust under the Act would control the activities at a major port for utilizing and creating facilities - Agencies utilizing such facilities would pay charges to the port trust at the rates specified with prior sanction of the Government - It would be open for the Board to utilize the money credited to the general account for the purposes mentioned in sub-section(1) of section 88 - Such purposes include the administrative expenses and salary and other benefits to be paid to the employees and also the cost of repairs and maintenance of the property of the Board and other expenses – the assessee is involved in an activity which is of general public utility is doubtless - the fact that there is no profit making or motive to make profit is equally clear from the provisions of the Act of 1963. Following Commissioner of Income-tax vs. Gujarat Maritime Board [2006 (7) TMI 102 - HIGH COURT, GUJARAT] and Commissioner of Income-tax, A.P. v. Andhra Pradesh State Road Transport Corporation [1986 (3) TMI 1 - SUPREME Court] - the Corporation was established for the purpose of providing efficient transport system, having no profit motive, though it earns income in the process, it is not liable to income-tax - section 10(20) of the Act and section 11 operate in different spheres - Even if the Board has ceased to be a “local authority”, it is not precluded from claiming exemption under section 11(1) of the Act. Whether the conditions for exemption under section 11 are satisfied or not, are the issues which need to be examined only at the time of assessment. However, the assessee in the facts of the present case cannot be denied registration under section 12A of the Act - Decided against Revenue.
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