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2018 (11) TMI 117 - ITAT COCHINExemption u/s. 11 - denial of exemption as activities of the assessee did not fall under under any of the objectives such as relief for the poor, education, medical relief, the preservation of environment (including water sheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic interest but comes under the objectives of advancement of any other object of general public utility - though the assessee are issued a certificate u/s. 12A of the Act by the CIT - Held that:- Even if is held not to constitute a business held under trust, but only as a business carried on by or on behalf of the trust, so long as the profits generated by it are applied for the charitable objects of the trust, the condition imposed u/s. 11(4A) of the Act should be held to be satisfied, entitling the trust to the tax exemption. These observations have to be understood in the light of the facts before the Supreme Court in the case of Thanthi Trust [2001 (1) TMI 80 - SUPREME COURT] wherein the trust carried on the business of a newspaper and that business itself was held under trust. The charitable object of the trust was the imparting of education which falls u/s. 2(15) of the Act. The newspaper business was incidental to the attainment of the object of the trust, namely that of imparting education and the profits of the newspaper business are utilized by the trust for achieving the object of imparting education. In this case, there is no such nexus between the activities carried on and the objects of the assessee that can constitute an activity incidental to the attainment of the objects, namely, to promote cause of charity, mission activities, welfare, employment, diffusion of useful knowledge, upliftment and education and to create an awareness of self-reliance among the members of the public etc. Being so, we are inclined to hold that the assessee is not entitled for any exemption u/s. 11 of the I.T. Act. - Decided against assessee.
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