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2019 (6) TMI 429 - AT - Income TaxExemption u/s 11 - charitable activity u/s 2(15) - Bangalore Development Authority (BDA) - real estate developer - scope of amendment of section2(15) w.e.f. 01.04.2009 - existence for “Charitable Purpose” objects of the assessee as per BDA Act, was to develop the City of Bangalore and areas adjacent thereto - as per AO focus of the Assessee has been more on selling sites by auction to the highest bidder and was not for providing affordable housing to the public - HELD THAT:- As decided in assessee's own case [2019 (3) TMI 1300 - ITAT BANGALORE] the fact of surplus or shortfall is not to be reckoned as the test for applicability of the proviso to section 2(15); but rather, whether the activity is embarked upon solely with the view to earn profit or not; which the AO and CIT(A) have not done. We hold that the activities of the assessee, i.e., Bangalore Development Authority are not hit by the proviso to section 2(15) of the Act. Having held so, we direct the AO to allow the assessee the benefits of section 11 while giving effect to this order. Consequently, grounds raised by the assessee on this issue are allowed.
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