Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (7) TMI 1339 - AT - Income TaxExemption u/s 11 denied - AO felt that the assessee was engaged in the business of running cafeteria and coffee shop with profit motive - HELD THAT:- The assessee is registered as a charitable institution u/s 12A with the Commissioner of Income tax. It is not in dispute that the aims and objects of the society are objects of general public utility inasmuch as they attempt to promote better understanding amongst various sections of the society. Establishing communal harmony and better understanding between various sections of the society are purely in the nature of objects of general public utility. The assessee had generated profit from cafeteria and coffee shop but the fact of the matter is that these facilities were created for the members of the assessee-society. The profit so generated from cafeteria and coffee shop was utilized for achieving the aims and objects of the society. The society had no overall profit in the year under appeal. Profits so generated from cafeteria and coffee shop were ultimately used for achieving aims and objects of the institution. Therefore, such profits generated from a few activities of the institution cannot be used to convert a purely charitable institution into non-charitable institution. The view that we are taking in the matter is supported by the order passed by a Coordinate Bench of this tribunal referred to by the ld. AR for the assessee at the time of hearing. Appeal filed by the Revenue is dismissed.
|