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2015 (1) TMI 1417 - ITAT AHMEDABADBenefit of Section 11 & 12 - charitable activity as per Section 2(15) - HELD THAT:- The proviso to Section 2(15) is applicable to objects of general public utility. The same was also clarified vide CBDT Circular No. 11 dated 19.12.2008. Since assessee company is directly engaged in preservation of environment as per Section 2(15), the proviso as pointed by AO is not applicable in the instant case. Accordingly, AO was not justified to conclude that assessee is not doing any charitable activity. With regards to AO’s contention that assessee is carrying out business activity and is in the nature of profit making, we find that benefit of exemption cannot be denied on the ground that it had made surplus/profits as long as it is not meant for private profit of seller. Profit making is not predominant object of activity. CIT(A) was justified in holding that assessee is doing charitable activity as per Section 2(15), benefit of Section 11 & 12 of the Income-tax Act is available to it. CIT(A) was justified in directing AO to treat the activity of assessee company as charitable and further rightly directed to delete the addition. This reasoned finding of CIT(A) needs no interference from our side. - Decided against revenue.
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