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2019 (5) TMI 410 - AT - Income TaxExemption u/s 11 - charitable activity or not? - inter-trust donation by one charitable trust to another for utilization by the donee trust towards charitable objects - as per AO activities of the trust are not of charitable in nature being not involved in providing relief to the poor, education and medical relief etc. also that at the most, the trust can be treated as “advancement of other objects of general public utility” and on this ground also, the assessee is not entitled for any relief because income of the trust during the year under assessment exceeds ₹ 25,00,000/-. - HELD THAT:- As decided in assessee's own case [2019 (2) TMI 1616 - UTTARAKHAND HIGH COURT] inter-trust donation by one charitable trust to another for utilization by the donee trust towards charitable objects is proper application of income for charitable purpose in the hands of donee trust and it will not affect the exemption claimed by the assessee u/s 11 of the Act in any manner whatsoever nor inter-trust donation can be termed as deviation from its objects as it is nowhere the case of the Department that the donee trust has not applied such sums for charitable purpose by deviating its funds, hence relief granted by ld. CIT (A) needs no interference - Decided against revenue Receiving consideration on sale of medicines, publications, CD-VCDs, etc. - whether such activities of the trust cannot be said to be charitable in nature as it is receiving consideration while carrying out its business activities which falls under the explanation of “advancement of any object of any public utility under section 2(15) ? - HELD THAT:- Objects of the assessee trust fall within the purview of providing medical relief, imparting education or relief to the poor and are not in the nature of general public utility, so the proviso to section 2(15) of the Act is not attracted in case of the assessee trust. So, ld. CIT (A) has rightly decided the issue in favour of the assessee by following the decision rendered by the Tribunal in assessee’s own case for AY 2009-10 [2019 (2) TMI 1616 - UTTARAKHAND HIGH COURT] - Decided in favour of assessee.
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