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2018 (7) TMI 1732 - HC - Income TaxExemptions u/s 11 - Charitable activity - Applicability of proviso to section 2(15) - activity of breeding milk cattle; to improve the quality of cows and oxen and other related activities - AO observed that, considerable income was generated from the activity of milk production and sale - Held that:- In case of Sabarmati Ashram Gaushala Trust (2014 (1) TMI 1539 - GUJARAT HIGH COURT), under somewhat similar background held that the objects of the Trust clearly establish that the same was for general public utility and for charitable purposes - Profit making was neither the aim nor object of the Trust - Merely because while carrying out the activities for the purpose of achieving the objects of the Trust, certain incidental surpluses were generated, would not render the activity in the nature of trade, commerce or business - As clarified by the CBDT in its Circular No. 11/2008 dated 19th December 2008 the proviso aims to attract those activities which are truly in the nature of trade, commerce or business but are carried out under the guise of activities in the nature of ‘public utility’ - The facts and circumstances of each case are different - Decided against Revenue.
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