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2023 (1) TMI 850 - AT - Income TaxExemption u/s.10(23)(vi) - assessee is an education trust and made an application in Form 56D on 26.09.2018 seeking approval u/s 10(23C)(vi) - HELD THAT:- From the documents and evidences, it is vivid that Profit and loss account of the assessee-trust contains the activity, stating fee received from students, bus transportation fee and books fees etc. received from students, whereas in the expenses side, we note that there are transportation expenses, educational expenses, expenses to purchase the books, salary payment to teachers and staffs. Therefore, from the above Profit and loss account of the assessee trust it is clearly established that assessee trust is engaged in the educational activities and there is nominal profit which are earned by the assessee while conducting these charitable activities. The assessee-trust does not have profit motive, the small profit generated while carrying out charitable activities, does not mean that assessee is engaged in the commercial activities. Such small profit so earned is again utilised for charitable activities by the assessee-trust. From these documents and activities, it is clearly established that assessee -trust is engaged solely in the educational activities. Therefore, we are of the view that assessee-trust deserves certificate, under section 10(23C) (vii) - Hence, we direct the Ld CIT(Exemption) to grant registration/certificate, to the assessee-trust under section 10(23C) (vii) - Appeal of the assessee is allowed.
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