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2021 (3) TMI 772 - AT - Income TaxExemption u/s 11 - interest received from bank deposit as `Commercial or Business Income’ - assessee is a charitable society having registration under 12AA - HELD THAT:- The assessee had been established by Government of Karnataka vide GO No.CI-69-SPC-92 dated 22.05.1992 as a society registered under the Karnataka Societies (Registration) Act, 1960. The assessee has been established for charitable purposes and is registered u/s 12AA of the I.T.Act. The assessee acts as a single window facilitation for the purpose of establishing industries in the State of Karnataka. The income received during the assessment year 2013-2014 consisted of single window facilitation and interest on fixed deposit. AO had treated the entire income as commercial / business, falling under the first proviso to section 2(15) of the I.T.Act and denied exemption u/s 11 - AR had relied on various case laws for the proposition that when the dormant object of the assessee is not to make profit, proviso to section 2(15) of the I.T.Act does not have application. This specific plea of the assessee has not been adjudicated by the A.O. nor by the CIT(A). Therefore, we are of the view that the matter needs to be examined de novo by the A.O. Accordingly, the issues raised in this appeal are restored to the files of the A.O. The A.O. shall afford a reasonable opportunity of hearing to the assessee and take a decision in accordance with law. Appeal filed by the assessee is allowed for statistical purposes.
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