Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (4) TMI 643 - AT - Income TaxDenying exemption U/s.11(l)(a) and S. 11(2) - proof of charitable activities - Held that:- The Director and the secretary are required to be appointed with the prior approval of MOC and I, Govt of India. Assessee institute receive grants from the Govt. under plan fund. Clauses 38 and 39 of MOA which demonstrate that Income and Property of Institute has to be applied only towards promotion of objects of the assessee and that assessee cannot declare dividends. Further, in event of winding up of the Institution nothing will be paid or distributed to the members of the assessee institute. Assessee institution carries on activities of education, research and development, consultancy, laboratory research including testing and certification in relation to packaging at concessional rates to cover its recurring costs and future costs. The capital costs are usually met from grants of the government. Hence, there appears to be no profit motive, and surplus if any is nothing but recovery of future costs to be incurred by the assessee Institution for achieving its objects. Keeping in view the activities already undertaken by the assessee it appears that both the lower authorities have not properly appreciated actual activity being undertaken by the assessee and invoked provisions u/s.2(15) for declining the claim of exemption u/s.11. In the interest of justice, we restore the matter back to the file of the AO for deciding afresh after considering above observations. We direct accordingly.
|