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2022 (2) TMI 650 - HC - Income TaxExemption u/s 11 - whether Tribunal erred treating the assessee as a charitable institution, even when the activities of the assessee fell under the last limb of Section 2(15)? - HELD THAT:- This Court in Commissioner of Income Tax (Exemptions) Delhi vs. Association of State Road Transport Undertakings [2021 (10) TMI 179 - DELHI HIGH COURT] has held that it is settled law that the first proviso to Section 2(15) of the Act does not exclude entities which are for charitable purpose but are conducting some activities for a consideration or a fee A perusal of the paper books reveals that the assessee-society is running a printing press and publishing a newspaper. The profit so generated is used for charitable purposes and apparently there is no profit motive in the activities of the assessee. As such it cannot be said that the assessee is involved in any trade, commerce or business. Consequently, the mischief of proviso to Section 2(15) of the Act is not attracted to the present batch of matters. In any event, the assessee-society is charitable in nature as the profit, if any, made by the assessee-society is ploughed back for charitable activities. It is pertinent to mention that the assessee-society was set up by the late freedom fighter Lala Lajpat Rai. The appellant itself has granted the assessee registration under Section 12A, recognition under Section 10(23C)(vi) and Exemption under Section 80G of the Act. Consequently, this Court is in agreement with the finding of the ITAT that the assessee-society does not carry on any business, trade or commerce with the intent of earning and distributing profit. - Decided in favour of assessee.
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