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2017 (7) TMI 1367 - AT - Income TaxExemption u/s 11 - assessee as covered by section 2(15) or not - AO observed that the appellant was carrying on business of sale & purchase of residential houses, construction of mutli-storeyed houses, sale of residential plots and commercial plots by auction and earned huge net profit - HELD THAT:- Considering the nature of the Act, selling of plots and premises by the trust is only incidental and ancillary to its main purpose which at the cost of repetition is "town improvement". Even where the plots are developed and premises are constructed and sold at the market price, the activity is not commercial or business venture per se but one necessitated on account of the implementation of the provisions of the trust through statutory schemes. The main purpose of such schemes is driven by public requirements and not as a commercial venture per se. They are incidental to the main object of the trust. In the present case, the AO has not indicated any facts which indicate that the assessee deviated from this principle. He has merely referred the extent of profit making activities without correlating the same to the other activities of the trust. As decided in Tribune Trust [2017 (1) TMI 53 - PUNJAB AND HARYANA HIGH COURT] Section 2(15) and the corresponding sections including Sections 11, 12, 12A and 12AA are independent of Section 10(20A) of the Act. Upon the omission of Section 10(20A), the provisions of the other sections were not affected. They remained intact. An assessee could have been entitled to the provisions of Section 10(20A) and the other provisions simultaneously. The omission of one, however, does not affect the validity or the existence of the others. The two provisions are distinct and independent of each other. Thus the omission of Section 10(20A) did not affect the rights of the parties claiming the benefit of Sections 2(15), 11, 12, 12A and 12AA - Decided in favour of assessee.
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