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2015 (12) TMI 196 - AT - Income TaxEligibility for exemption u/s 11 & 12 - Held that:- Amendment made in section 2 (15) of the act with effect from 1.4.2016 by substituting the first proviso and second proviso by a single proviso, which would now exempt the business income, where the activity “is undertaken in the course of actual carrying out of such advancement of any other object of general public utility”, so that it recognizes all the activities consistent with the objects, where the objects are not prompted by profit motive, from the purview of liability bringing the law to conform The Constitution which was challenged before Honourabel Delhi High court in Indian Trade promotion Organization V DGIT ( Exemption) (2015 (1) TMI 928 - DELHI HIGH COURT) . The effect of this provision would bring those trusts and institutions, like assessee, with the object of general public utility on par with those with the other three objects in respect of the treatment for income from business, if it is incidental to the objects as provided under section 11(4A) of the Act, subject to certain limitation. In view of above we reverse the order of CIT (A) and hold that assessee is eligible for exemption u/s 11 & 12 of the Income Tax Act as assessee is not engaged in any trade, commerce or business and its dominant and prime objective is charitable in nature in accordance with section 2 (15 ) of The Income Tax Act. - Decided in favour of assessee.
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