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2014 (7) TMI 87 - AT - Income TaxExemption u/s 11 - Charitable activity - profit from an exhibition viz., 'Deep Mela' - commercial activity or not Requirement to maintain separate books of accounts Held that:- The activity of organising 'Deep Mela' is not a commercial activity - What is prohibited under the Act is carrying on business and not generating income in furtherance of its objects - The assessee was to generate income to finance its educational/charitable activities Relying upon Assistant Commissioner Of Income-Tax Versus Thanthi Trust [2001 (1) TMI 80 - SUPREME Court] - a business whose income is utilised by the trust or the institution for the purpose of achieving the objectives of the trust or the institution surely is a business which is incidental to the attainment of the objectives of the trust - The objectives of the society would include financing charitable activities - the activity of organising 'Deep Mela' is incidental to the attainment of its objectives. - Decided in favor of assessee. Non utilization of amount - accumulation - Held that:- The AO has pointed out that the assessee failed to utilise the amount within the period allowed u/s. 11(2) of the Act and assessee filed details of its utilization the issue of accumulation and utilisation of the amount accumulated is to be remitted back to the AO for verification of the details Decided partly in favour of Assessee.
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