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2018 (4) TMI 630 - AT - Income TaxEligibility to claim exemption u/s 11 & 12 - proof of charitable activity - identification of dominant activity of the assessee - Held that:- Substantial portion of the income of the assessee came from stall charges, seminars, subscriptions and sponsorship. Asset base of the assessee was very small. However, it was holding substantial receivable of G24.83 lakhs and cash at bank of G18.79 lakhs as on 31.03.2010. Receivables as on 31.03.2011 came to G33.86 lakhs and cash at bank was G19.95 lakhs. In our opinion the question that ought have been addressed by the ld. Assessing Officer was whether the activities of the assessee as reflected in its income and expenditure accounts and its statement of affairs as reflected in the Balance Sheets, would show what was the dominant activity of the assessee. AO ought have identified the dominant activity of the assessee and verified whether such activity was in line with its objects and whether income earned through stalls, seminars, conferences, entrance fees etc were part of such dominant activity or ancillary to it. Unless a close examination of this nature is done, in our opinion, a conclusion as to whether assessee was hit by the proviso to Section 2(15) of the Act cannot be reached. None of the lower authorities had done this analysis. In the circumstances, we are of the opinion that the matter requires a fresh look by the ld. Assessing Officer. - Decided in favour of revenue for statistical purpose.
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