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2018 (7) TMI 2043 - AT - Income TaxBenefit of exemption u/s.11 denied - charitable activity u/s 2(15) - assessee is a charitable trust engaged in the activity of promotion of swimming - HELD THAT:- As decided in own case [2018 (4) TMI 1267 - ITAT MUMBAI] providing sports facilities to general public without restriction to any caste, creed, religion or profession is eligible for exemption u/s 11 of Income-tax Act, 1961. An activity would be considered "business" if it is undertaken with a profit motive. There should be facts and other circumstances which justify and show that the activity undertaken is in fact in the nature of business. The expressions "business", "trade" or "commerce" as used in the first proviso must, thus, be interpreted restrictively and where the dominant object of an organization is charitable any incidental activity for furtherance of the object would not fall within the expressions "business", "trade" or "commerce". If the object or purpose of an institution is charitable, the fact that the institution collects certain charges does not alter the character of the institutions. It is not necessary that it should provide something for nothing or for less than it costs or for less than the ordinary price. It is not necessary that the Trust should provide something for nothing or for less than it cause or for less than the ordinary Trust. Accordingly the orders of the authorities below are set aside. Accordingly, hold that the assessee trust should not be visited with denial of exemption. Hence, the orders of the authorities below is set aside and issue decided in favour of the assessee.
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