Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (8) TMI 1381 - AT - Income TaxClaim exemption u/s 11 - proof of charitable activities - Held that:- The law in different facet in respect of mutual concerns is now well summed up by the Hon’ble Supreme Court in CIT vs Bankipur Club[1997 (5) TMI 392 - SUPREME COURT] held that the object of the assessee company claiming to be a ‘mutual concern’or a ‘club’, is to carry on a particular business and the money is realised both from the members and the non-members, for the same consideration by giving the same or similar facilities to all alike in respect of the one and the same business carried on by it, the dealings as a whole, disclose the same profit-earning motive and are alike tainted with commerciality and the resultant surplus is profit-income liable to tax. In respect of proviso inserted by the Finance Act 2008 to section 2(15), one has to keep in mind that such entities shall not be eligible for exemption u/s 11 or u/s 10(23C) of the Act, if they carry on commercial activities. One has to examine the nature, scope, extent and frequency of such activity. We have perused the relevant materials on record and find that neither the AO nor the Ld. CIT(A) has examined the above aspects while arriving at their conclusion. In view of the above, we set aside the order of the Ld.CIT(A) and restore the matter to the file of the AO to make a fresh assessment in the light of our observation at para 7.3 here-in-above and after giving reasonable opportunity of being heard to the assessee. We direct the assessee to file the relevant details before the AO. Appeal is allowed for statistical purposes.
|