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2017 (8) TMI 1631 - AT - Income TaxDenial of exemption under section 11 - charitable activity u/s 2(15) - assessee was registered under section 12A - HELD THAT:- As decided in assessee's own case [2015 (1) TMI 696 - ITAT MUMBAI] all the activities are carried out in accordance with the objects and none of its activities have been found to be non genuine. The assessee's explanation before the DIT regarding nature of receipts clearly shows that they have been received from the members while pursuing objects of the society, specifically mentioned in the "objects" for which it was granted registration u/s 12A. Otherwise also, if any transaction of the trust which are incidental or ancillary towards fulfillment of the objects of other general public utility, will not normally amount to business trade or commerce, unless there is some intention to carry out business, trade or commerce on a permanent basis or for a reasonable continuity. The LD. DIT has not brought any evidence or material on record to show that the assessee was carrying out the activities on business or commercial principle or outside its objects. Thus on the facts of the present case it cannot be held that assessee's case is hit by proviso to section 2(15) or the registration granted earlier can be canceled within the ambit of section 12AA(3). We find that the assessee’s appeal is for A.Y. 2010- 11 but the assessee was granted the registration in A.Y. 2009-10 itself by the Tribunal. Therefore, assessee’s appeal is allowed. In A.Y. 2011-12, the Ld. CIT(A) has followed the order of 2009-10. Therefore, Revenue’s appeal is dismissed.
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