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2018 (5) TMI 1880 - AT - Income TaxExemption u/s 11 denied - Whether objects of the assessee seem to be charitable in nature but the activities which yielded income to the assessee are commercial in nature? - CIT(A) deleted the addition holding the assessee a charitable association and directed the Assessing Officer to allow exemption u/s. 11(1) of the Act, as the assessee is not involved in any trade, commerce or business activities to attract the mischief of proviso to section 2(15) - HELD THAT:- When predominant activities of the assessee trust are promotion of education & sports activities and its major source of income is grant from the Ministry of HRD and Ministry of Youth Affairs and Sports, membership fees from the universities etc., no ground is made out to invoke the proviso to section 2 (15) of the Act. Moreover, it is the admitted case of the Revenue that the assessee trust is only publishing and selling text book and reading material which is being supplied to the students only. So, merely receiving fee and charges from the universities and selling text books to the students do not amount to entering into trade, commerce and business activities, particularly when the assessee trust is being run on the basis of the grants by the Government of India and on the basis of fee being collected from universities and its members. We find that the issue involved in this appeal is squarely covered in favour of the assessee by the decision of co-ordinate Bench in assessee’s own case for A.Y. 2010-11
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