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2023 (4) TMI 627 - AT - Income TaxExemption u/s 11 - Charitable activity u/s 2(15) - assessee Society was pursuing charitable activities by running Suvidha Centre for general public by organizing and participating in awareness campaigns against drug abuse and addiction, spreading traffic awareness in general public, rendering service related to passport and visa related services, police clearance certificate, issuance of copy of NOC, issuance of documents and arms license verification etc. - AO considering the activities of assessee first determined the violation of section 2(15)and had rejected the claim of deduction U/s 11 r.w.s. 13(8) - HELD THAT:- Revenue authorities first pointed out that from the financial statement of the assessee it is not clear that the assessee is doing any charitable work. The eligibility for deduction u/s 11 for community work for collection of facilitation charges is not under the purview of the Act. In appeal order, the appellate authority reproduced the income and expenditure account of the assessee. Whereas, no such charitable work is reflected in collection of facilitation charges. We respectfully considered the order in the matter of DCIT, Exemption Vs. Sabarmati Ashram Gaushala Trust [2014 (1) TMI 1539 - GUJARAT HIGH COURT]. The same factual aspect is duly settled in the case of Ahmedabad Urban Development Authority, [2022 (10) TMI 948 - SUPREME COURT] as held essee's activities amount to "trade, commerce or business" based on its receipts and income (i.e., whether the amounts charged are on cost-basis, or significantly higher). If it is found that they are in the nature of "trade, commerce or business", then it must be examined whether the quantified limit (as amended from time to time) in proviso to section2(15), has been breached, thus disentitling them to exemption. Accordingly, we remit back the ground of the assessee to ld. AO for adjudication, de novo in the light of the order above. Appeals of the assessee allowed for statistical purpose.
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