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2019 (4) TMI 377 - HC - Income TaxCharitable activity u/s 2(15)- Addition of interest holding that the income is exempt u/s 11(5) and the proviso to Section 2(15) - object of the assessee club - HELD THAT:- The main object of the assessee club as noted above is to provide golf facilities to the members for promotion of the sport. The Tribunal correctly held that there was no element of the assessee's activity being in the nature of trade, commerce or business. Once the applicability of the proviso to Section 2(15) is ruled out, the question of the exemption under Section 11 of the Act would arise. Clause (a) of sub-section (1) of Section 11 provides that subject to the provisions of Sections 60 to 63, the income derived from the property held under trust wholly for charitable or religious purposes to the extent to which such income is applied to such purposes shall not be included in the total income of the previous year of the person in receipt of the income. The assessee had invested its surplus funds in specified deposits earning interest which reduced the assessee's loss. In terms of sub-section (1) of Section 11 of the Act, therefore, such income was exempt from tax. The Tribunal, therefore, correctly granted relief to the assessee. No question of law arises.
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