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2017 (1) TMI 619 - AT - Income TaxEligibility to exemption u/s. 11 & 12 - charitable institution - whether assessee’s activity falls under the category of ‘advancement of any other object of General Public Utility’? - First Proviso to Section 2(15) challenged as arbitrary and unreasonable and has no rational nexus with the object sought to be achieved and is thus violative of Article 14 of the Constitution of India - Held that:- Recently the Hon'ble Delhi High Court in the case of India Trade Promotion Organization vs. DGIT(E)(2015 (1) TMI 928 - DELHI HIGH COURT ) has upheld the constitution validity of the proviso of section 2(15) which was under challenge being discriminatory in view of the Article 14 (Equality before law) of the Constitution of India but the Hon'ble High Court has read down the strict and literal Interpretation of the Proviso of section 2(15) and has held that mere receipt of fee or charge cannot be said that the assessee involved in any trade, commerce or business and has accordingly allowed the relief to the ITPO. Also further find that after considering all the facts and circumstances of the case and following the order of Ld. CIT(A) for AY 2010- 11 & 2011-12, Ld. CIT(A) has rightly held that the assessee is a charitable institution and accordingly, the AO was directed to allow the exemption u/s. 11 & 12 of the I.T. Act to the assessee alongwith consequential benefits - Decided in favour of assessee
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