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2022 (10) TMI 397 - AT - Income TaxExemption u/s 11 - As per AO assessee corporation is registered u/s. 12AA where their business income which is not allowable for exempt u/s. 11 and 12 - As per DR assessee corporation does not come within the definition of section 2(15) of the Act which defines charitable purpose it comes under business income - HELD THAT:- Assessee does not driven primarily by desire or motive to earn profits but to do charity through advancement of an object of general public utility. The proviso to Sec. 2(15) of the Act is therefore not applicable to the case of the assessee. With the view of the CIT(A) and hold that the Assessee is entitled to the benefits of Sec. 11 - AO has not disputed the conditions necessary for allowing exemption u/s. 11 except the applicability of proviso to Sec. 2(15). In view of our conclusions that the said proviso is not applicable to the case of the Assessee, we hold that the Assessee's income is entitled to the benefits of Sec. 11 - With regard to the arguments of the DR, we are of the view that the same are without any merit. The proviso to Sec. 2(15) of the Act has been discussed in the case of India Trade Promotion Organization vs. DGIT(Exemption) [2015 (1) TMI 928 - DELHI HIGH COURT] and the dominant motive is the criteria as laid down therein. Therefore the answer to the arguments put forth by the learned DR are found in the aforesaid decision. As we have already seen, the profit of the Assessee have to be used only for road development, as in the case of the decision in the case of APSRTC [1988 (8) TMI 391 - ANDHRA PRADESH HIGH COURT] where the revenues have to be utilized only for the purpose of road development. Tribunal in assessee's own case, we hold that the assessee is not hit by proviso to section 2(15) - Accordingly, the A.O. is directed to grant benefit of exemption u/s. 11 for the relevant assessment year. CIT(E) has rightly and fairly allowed of the assessee.
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