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2021 (12) TMI 602 - HC - Income TaxExemption u/s 11 - Charitable activity u/s 2(15) - assessee receives fee by way of commission from the Government for purpose of construction of building for Government - HELD THAT:- The assessee must satisfy the conditions stipulated in the definition. The assessee tries to bring its case within the ambit of 4th limb of section 2(15) of the Act and attempts to wriggle out from the effect of proviso which deals with services in relation to trade, commerce or business. The contention, in our considered view, is completely untenable. The assessee receives amount from the Government, executes construction work for the benefit of the Government through contractors. The assessee receives fee by way of commission from the Government. The purpose of construction of building for Government cannot be accepted as an activity coming within the meaning of advancement of any other object of general public utility. In our view the reason being the construction activity by itself does not advance any other object of general public utility. The general public utility from such construction is derived as fact with the facilities constructed by the assessee are put to utility. The activity undertaken by the assessee on one hand and on another hand with the ultimate purpose or user of buildings constructed by the Government shall not be mistaken with one another. The assessee is interpreting proviso by excluding one of the important limbs, viz. involves the carrying on of any activity in the nature of trade, commerce or business. The decision of the authorities are independently considered and by taking note of CBDT Circular and above reasoning, we are of the view that the substantial question raised could be answered in favour of the revenue and against the assessee.
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