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2024 (3) TMI 944 - AT - Income TaxExemption u/s 11 - Charitable activity u/s 2(15) - AO has rejected the exemption on the ground that the activity of the assessee for advancing the object of general public utility cannot be accepted as the society is advancing the object of general public utility and gross receipt of assessee from such activity was more than Rs. 10 lakhs, in the previous year and therefore the activities of the assessee were held to be not for charitable purpose - assessee submitted that the assessee is registered u/s 12A - HELD THAT:- We find that the assessee is registered u/s 12A and has derived income by way of contributions from the head office, membership fee, income from publication of Indian Foundry journal , other grants and donations etc. besides receiving interest on fixed deposits . We find that undoubtedly the assessee’s main object is general public utility which is clearly covered u/s 2(15) of the Act however the receipts from the said activity is more than 10 lakh and now the issue before us where surplus generated from the said activity is meager so that it does not fall within the ambit of proviso to Section 2(15) of the Act. We note that profit on the receipts is very meager and therefore the decision of Co-ordinate Bench in the case of Indian Chamber of Commerce (2014 (12) TMI 256 - ITAT KOLKATA) is clearly applicable We are inclined set aside the order of ld. CIT(A) and further uphold that the assessee is entitled to exempt u/s 11 of the Act during the year on the ground that the profit derived from the services rendered as public utility service is very meager. The AO is directed to allow the exemption u/s 11 of the Act. Appeal of the assessee is allowed.
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