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2020 (7) TMI 460 - AT - Income TaxEligibility of exemption u/s 11 & 12 - whether assessee activities are not in charitable nature and activities falls under the last limb of section 2(15) and hit by the proviso to section 2(15) ? - HELD THAT:- As relying on assessee's own case NEW DELHI YOUNG MEN’S CHRISTIAN ASSOCIATION LTD. AND VICE-VERSA [2017 (11) TMI 1370 - ITAT DELHI] we hold that assessee is eligible for exemption under Section 11 and 12 of the Act and the activities of the assessee are not hit by proviso to Section 2(15) of the Act. The expression would take its colour and had to be considered in the context of Section 10(23C)(iv) of the Act. The court held that if in terms of the dominant and primary objectives of the Institution there was no desire to gain profits and the object was to promote trade and commerce not for itself but for the nation was to be construed as a charitable purpose. Thus, on a careful consideration of the entirety of the facts and the material on record and based on the history of the case and the existing precedents on this point, we have no hesitation in holding that the CIT(A) has rightly decided the issue in favour of the assessee Association by directing relief u/s 11 read with Section 12AA. The assessee trust’s income is also required to be computed on the commercial basis. In view of this all the grounds of appeal filed by the ld. Assessing Officer are dismissed. - Decided in favour of assessee.
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