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2019 (7) TMI 1448 - HC - Income TaxCharitable activity u/s 2(15) - exemption u/s 11 - whether activity of the Assessee did not cease to be a ‘charitable activity’ for the purposes of Section 2(15) because the Assessee charged a ‘management fee’ for defraying its administrative expenses? - HELD THAT:- In the impugned order the ITAT has noticed that the Assessee is a company registered under Section 25 of the Companies Act. It gives 85% of the donation received by it to the Government of India for HIV Aids and only 15% of its total donation is given to other societies for awareness and treatment of poor HIV Patients. The entire amount spent by the Assessee is through societies and trusts. It also runs its own project for the welfare of HIV and AIDS patients. In the above circumstances it has been held that merely because the Assessee charges management fees to defray the administrative costs it would not make its essential activity a business activity. The Court is unable to find any legal infirmity in the impugned order of the ITAT. No substantial question of law arises.
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