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2020 (8) TMI 362 - AT - Income TaxClaim of exemption u/s 11 - whether the activities of the assessee in the year under consideration is coming under the purview of its claim u/s 11 or it is within the periphery of the last limb of the First proviso of Section 2(15) of the Act under the definition of “charitable purpose” i.e. Advancement of any other object of general public utility? - HELD THAT:- No manner of application to the instant case before us when we find that the activities of the assessee before us is indicative enough of profit oriented intent moreso when the activities /project by the assessee is done at the behest of the RBI for general public utility. The clauses of the memorandum of Association clearly clarify the actual status of the appellant read with the letter dated 08.06.2012 issued by RBI - It is the settled principle of law that the claim under Section 11 is to be extended to a registered organization u/s 12A provided the activities of such organization should be in consonance with the objects of the section. In the case in hand though the assessee is a registered concern u/s 12A as a charitable institution, the actual work done by the assessee in the year under consideration is not charitable in nature particularly when no formal and systematic educational function is discharges by it rather commercial in view of the receipt on turnkey project basis, from RBI in lieu of the service rendered by the assessee which involves the activities carrying on in the nature of trade, commerce or business for consideration coming under the periphery of First Proviso to Section 2(15) of the Act which has already been clarified by the First Appellate Authority. No infirmity in the order impugned passed by the First Appellate Authority observing the project under contract with RBI for setting up of the financial museum by the assessee does not reflect discharging of any formal and systematic education rather the same is enough indicative for the commercial purposes, rejection thereon, in our considered opinion, is just and proper so as to warrant any interference. The assessee has no legs to stand upon in order to claim the relief u/s 11 of the Act and hence in the absence of any merit we dismiss the appeal preferred by the assessee. Appeals of the assessee are dismissed.
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