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2022 (3) TMI 1284 - ITAT BANGALOREExemption u/s 11 - Charitable activity u/s 2(15) - assessee was giving on rent Kalyana Mandapa for fees - whether trust was mainly for charitable purposes for providing facilities and amenities for the education of the poor, medical facilities etc? - as per revenue assessee was not maintaining any separate books of accounts for the business of running of kalyana mandapa, and therefore, even if the business is incidental to the attainment of the object of the Trust, the benefit u/s 11 of the Act cannot be granted - HELD THAT:- In the instant case, the assessee is primarily carrying on the activity of letting out of kalyana mandapa, which is nothing but objects of general public utility and the letting out is being done on a commercial basis by charging exorbitant amount. The amended proviso to section 2(15) of the I.T.Act has application to the facts of the instant case. Section 13(8) of the Act, inserted with effect from 01.04.2009 states that “Nothing contained in section 11 or section 12 shall operate so as to exclude any income from the total income of the previous year of the person in receipt thereof if the provisions of the first proviso to clause (15) of section 2 become applicable in the case of such person in the said previous year. Assessee has not been maintaining books of account separately for the business of letting out of kalyana mandapa. Therefore, even assuming the business is incidental to the attainment of the objects of the trust in absence of separate books of account, the benefit of section 11 of the I.T.Act cannot be granted. - Decided against assessee.
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